Inflationary gap is the excess of aggregate demand over and above its level
required to maintain full employment equilibrium in the economy.(with diagram)
During inflation, both CRR and SLR are raised. This reduces credit creation capacity
of commercial banks. As a result, aggregate demand reduces as required to correct
inflationary gap.
marlinbito answered the question on May 12, 2018 at 13:13
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May 12, 2018
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May 12, 2018
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May 12, 2018
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Date posted:
May 12, 2018
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May 12, 2018
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May 12, 2018
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May 12, 2018
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May 12, 2018
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Date posted:
May 12, 2018
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Date posted:
May 12, 2018
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Date posted:
May 12, 2018
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(Solved)
Explain how changes in prices of inputs influence the supply of a product.
Date posted:
May 12, 2018
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Date posted:
May 12, 2018
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Due to the increase in population the demand for agricultural land has” increased”. But the supply of agricultural land is fixed. Explain two methods...
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May 12, 2018
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Date posted:
May 12, 2018
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Explain the implications of the feature’ homogeneous products in a perfectly competitive market.
Date posted:
May 12, 2018
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Distinguish between explicit costs and implicit costs and give examples.
Date posted:
May 12, 2018
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Explain the importance of personal hygiene.
Date posted:
May 12, 2018
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(Solved)
Use real time illustrations to discuss how various demographic dispositions impact on economic performance of a least developed country.
Date posted:
May 12, 2018
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Explain the superiority of Optimum Population Theory over The Malthusian Population Theory
(Solved)
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Date posted:
May 12, 2018
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Answers (1)