What is deflationary gap
Posted by Sakshi Hela 11 months, 3 weeks ago
- 1 answers
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.
Posted by Jasmeet Kaur 2 weeks, 6 days ago
- 0 answers