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What are the Causes of inflatinory …

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What are the Causes of inflatinory gap and deflationary gap ?

Posted by Gurpreet Walia 7 years ago

CBSE > Class 12 > Economics

1 answers

Amarnath Ankit 7 years ago

Causes of deflationary gap : 1.Reduction in private consumption expenditure. 2. Reduction in investment expenditure. 3. Decline in export. 4. Rise in import Causes of inflationary Gap: causes of inflationary Gap are just opposite to the causes of deflationary Gap. This are rise in the various components of AD,a rise that continues to occur even when resources are fully utilised.

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