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Deflationary gap

This topic has 1 reply, 2 voices, and was last updated 6 years ago by Ken Garrett.

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May 14, 2018 at 7:33 pm #451919
lmendy
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What is the deflationary gap?
May 14, 2018 at 8:10 pm #451930
Ken Garrett
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The deflationary gap is the difference between potential output at full level of employment and the actual level of output of the economy ie, all the resources of the economy are not being used to the optimum level and some are idle.
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