DMPQ-What is deflationary gap? Write down the causes and impact of deflationary gap?
When in an economy aggregate demand falls short of aggregate supply at full employment level, i.e. the production is more than the demand, the demand is said to be deficient demand and the gap is called deflationary gap. Causes of the deflationary gap are: Fall in aggregate demand (AD) due to: Fall in exports (global … Read more DMPQ-What is deflationary gap? Write down the causes and impact of deflationary gap?