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Explain inflationary gap and deflationary gap...explain …

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Explain inflationary gap and deflationary gap...explain the method how to control it..

Posted by Kritika Gaurav 7 years, 1 month ago

CBSE > Class 12 > Economics

1 answers

Prateek Seth 7 years, 1 month ago

Inflationary gap is a situation when there is an excess demand in economy in respect to fuller utilisation of resources and deflationary gap refers to a situation when there is excess supply in the economy in respect to fuller utilisation of resources.. there are two measures to control inflation early and deflationary gap that is, quantitative and qualitative measure. quantitative measures includes decrease and increase in CRR SLR bank rate repo rate reverse repo rate, buying and selling of open market operations.. qualitative includes moral suasion, rationing of credit

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