Does an excess of AD over AS always imply a situation of inflationary gap?

Does an excess of AD over AS always imply a situation of inflationary gap?

Determination of Income and Employment Economics Class 12 CBSE Value Based Questions

Indrani
Jul 24, 2020
1 Answers

Answers

Narendra Rajput

Aug 3, 2020

No. Inflationary gap occurs only when AD>AS corresponding to full employment level of employment.

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