The deflationary gap is defined by
...
The deflationary gap is defined by
X
K
X + K
X - K
Correct answer is B
A deflationary gap shows the amount by which aggregate demand must be increased so that equilibrium level of income is increased to the full employment level. It is represented by point K.
Similar Questions
A country embarks on deficit financing in order to ...
In order to boost agriculture, West African countries should pay more attention to ...
Merchants banks perform all the following functions EXCEPT ...
Which of the following matters may account for changes in supply? I - Technological advances...
When a nation is experiencing balance of payment surplus, it is in a better position to ...
Which of the following is an objective of economic integration? ...
The survival of partnership depends on ...