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Point B, on the institutional PPF, represents an economy in long-run equilibrium,
producing Natural Real GDP. Finally, point C, beyond the institutional PPF but
below the physical PPE represents an economy in an inflationary gap, where the
...
2
Macroeconomics: Principles and Policy
The economy's self- correcting mechanism refers to the way money wages react
to either a recessionary gap or an inflationary gap. Wage changes shift the
aggregate supply curve and therefore change equilibrium GDP and the
equilibrium ...
William Baumol, Alan Blinder, 2011
Increase in aggregate demand, aggregate supply remaining constant, creates a
demand-supply gap which he called as "inflationary gap". According to Keynes,
the inflationary gap is the cause of inflation. Keynes had expressed his view on ...
Business-cycle macroeconomics deals with Key Terms andEConcept'S" -— Say's
Law Recessionary Gap Inflationary Gap LaisseZ-faire Video Questions and
Pebblems'.' 1' I—ii— For video tutorials and answers visit www.cengagebrain.
com ...
With the help of a diagram explain the concept of inflationary gap. 4 [CBSE 2000,
Comptt. Foreign 2000) Ans. Inflationary gap is the excess of aggregate demand
over and above its level required to maintain full employment equilibrium in the ...
6
Macroeconomics for Today
Under other circumstances, an inflationary gap may burden an economy. An
inflationary gap is the amount by which aggregate expenditures exceed the
amount re- quired to achieve full-employment equilibrium. In Exhibit 8, the
inflationary ...
7
Economics, Principles and Applications
An inflationary gap exists when aggregate expenditure is greater than income at
Y In Figure 10.5, we have an aggregate expenditure schedule represented by
AE0. At Yf aggregate expenditure is equal to the distance from the horizontal axis
...
James Harvey Dodd, Carl William Hasek, 1948
8
Essentials of Economics
To eliminate the inflationary gap shown in Figure 17-5, fiscal policy must reduce
aggregate demand and shift the aggregate demand curve leftward to AD2. This
reduces aggregate output and makes it equal to potential output. Fiscal policy
that ...
Paul Krugman, Robin Wells, Martha Olney, 2007
9
Economics Xii Part B Macro
State any one fiscal policy measures in removing inflationary gap. 22. What is the
effect of increase in government spending on aggregate demand? 23. What is
the effect of decrease in taxes on aggregate demand? Short Answer Type ...
10
Macroeconomics, Second Edition
The gap between the level of real GDP and potential output, when real GDP is
greater than potential, is called an inflationary gap. In Panel (b), the inflationary
gap equals Y, - YP. Now we can examine how these gaps may have occurred in
the ...
Timothy D. Tregarthen, Libby Rittenberg, 1999
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UPSC IES Exam 2015: General Economics Syllabus
The inflationary gap; Demand pull versus cost push inflation, the Philip's curve and its policy implication. Classical theory of Money, Quantity ... «India Today, 2月 15»
U. to implement grade hyperinflation to compete with Harvard, Yale*
“Ten years ago, there was an inflationary gap in the grading market, so the University felt a need to tighten,” he said. “Now, we think we have a ... «The Daily Princetonian, 1月 15»
Good politics, bad economics
Thus there was what is called in economic terminology an 'inflationary gap' of about 17 percent in each of the two years. Such an inflationary ... «The News International, 4月 14»
Gear up for the grand finale
A question on deflationary gap or inflationary gap, difference between final good and intermediate good, stock vs flow variables, factors ... «The Hindu, 1月 14»
A meaningless monetary policy
The double digit 'inflationary gap' in the last five years is not captured by the distorted official price indices but is experienced by the people in ... «The News International, 6月 13»
Inflationary Trap - A Regressive Inflationary Cycle
This reduction in the productivity will reduce the level of output in the economy and as a result push prices up creating an inflationary gap. «Huffington Post UK, 3月 12»
Unjust, inequitable, morally wrong
Year after year, from 2005-06, this inflationary gap between real and nominal GDP has been incrementally enlarging. In 2005-06 the gap was ... «Hindu Business Line, 3月 11»
