In deflationary gap we have resources under-utilized that means full capacity of resources is not used. In inflationary gap we have resources fully utilized and aggregate demand is increasing but no more supply is possible.
Hi Mr Gromit, I am all praise for ur invaluable services to the students of ACCA. Very easy and comprehensive way to explain the things. Much appreciated sir.
In simple term, inflation will make exports expensive as the production cost of the exported material will go high and hence it will be relatively cheaper to import.
However note that, in many cases inflation results in weaker currency and so lower purchasing power. This results in more exports like in China.
i got it clear but my question is, the types of market is the same as forms of imperfect market as you said [monopoly,monopolistic of competion and oligopolies] i’m i right or not. please i beg your answer, almight God be with you for the services that you are provide as,
joneile says
Thanks a lot for opentuition lectures videos,i have passed my F1 exam first time..16/11/2017
Ken Garrett says
Congratulations! Glad you found our material helpful.
ashish1991 says
Sir
Is study material of open tution wil be sufficient for clearing paper f2 ?
mehakfayyaz says
from where i can get the past papers?
emurwon says
i cannot understand the difference between deflationary gap and inflationary gap
enroluniabroad says
In deflationary gap we have resources under-utilized that means full capacity of resources is not used.
In inflationary gap we have resources fully utilized and aggregate demand is increasing but no more supply is possible.
projuneid says
This was very helpful. Thank you.
alinasir7865 says
Hi Mr Gromit,
I am all praise for ur invaluable services to the students of ACCA. Very easy and comprehensive way to explain the things. Much appreciated sir.
Abror says
Why in a graphic, are recession and boom above the trend, and depression and recovery below the trend.? Trend in output…Thank you…
Abror says
Hi Mr Gromit..Inflation would make exports relatively expensive and imports relatively cheap…Can you explain this in a simple way…Thank you..
projuneid says
This was a very stimulating question.
In simple term, inflation will make exports expensive as the production cost of the exported material will go high and hence it will be relatively cheaper to import.
However note that, in many cases inflation results in weaker currency and so lower purchasing power. This results in more exports like in China.
For full details read this;
https://www.investopedia.com/articles/investing/100813/interesting-facts-about-imports-and-exports.asp
Abror says
K
Abror says
Hi Mr Gromit…Inflation would make exports relatively expensive and imports relatively cheap.Can you explain this in simple way thanks…
roy says
i got it clear but my question is, the types of market is the same as forms of imperfect market as you said [monopoly,monopolistic of competion and oligopolies] i’m i right or not. please i beg your answer, almight God be with you for the services that you are provide as,
Ken Garrett says
Anythin that is not perfect is imperfect. So monopoly, oligopoly, monopolistic competition.
Ammar says
Can i please have a clear definition of a specific tax and a ad valorem tax?
Ken Garrett says
Ad valorem is based on value; specific is based on units.
ehtesham says
thanks, these concepts are pretty clear to me but what about inflationary & deflationary gap…….anyone pls help.
Duke says
Thanks.Its very useful.I understand it after finishing the lecture.
nicadu0220 says
thank you
nicadu0220 says
very informative
Harry says
i found this very useful. thank you