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An excess of aggragate demand Over …

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An excess of aggragate demand Over full employment level of aggragate supply represents a situation of inflationory . True or false
  • 1 answers

Preeti Dabral 1 year, 11 months ago

Excess of aggregate demand (AD) over aggregate supply (AS) will lead to inflationary gap only when AD is more than AS corresponding to full employment level of output. If AD Is more than AS before that level, then it will not lead to inflationary gap.

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