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What is deflationary gap

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What is deflationary gap

    • Posted by Sakshi Hela 2 years ago

    CBSE > Class 12 > Economics
    • 1 answers

    Preeti Dabral 2 years ago

    Deflationary gap is the shortfall in AD from the level required to maintain full employment equilibrium in the economy. In other words, it is equal to the difference between AD at full employment and AD at underemployment. In such a situation, there is involuntary unemployment in the economy.

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