[Solved] Inflationary Gap is a situation characterized by:

McqMate

Q.	Inflationary Gap is a situation characterized by:
A.	excess of Aggregate Demand over Aggregate Supply at the full employment level
B.	gap between Galloping Inflation and Runaway Inflation
C.	Inflation coupled with recession
D.	Inflation that usually prevails in a developing country
Answer» A. excess of Aggregate Demand over Aggregate Supply at the full employment level

1.5k

0

Do you find this helpful?

1

View all MCQs in

Discussion

No comments yet

Related MCQs

Of the various ways of financing government's investment expenditure, the least inflationary is : [PCS 1994]
Which of the following factors contributes to an inflationary trend?
Which of the following measures should be taken when an economy is going through inflationary pressures? 1. The direct taxes should be increased. 2. The interest rate should be reduced. 3. The public spending should be increased Select the correct answer using the code given below: [CDS 2012] Code:
Poverty Gap is :
Deficit financing creates additional paper currency to fill the gap between expenditure and revenue. This device aims at economic development but if it fails, it generates : [IFS 1990]
The terms of economics, the recession occurring two times with a small gap in between is known as [Bank of India PO 2010]
The situation with increasing unemployment and inflation is termed as: [CPO AC 2003]
The effect of inflation on tax revenue results in a situation known as :
'Liquidity trap' is a situation in which: