Inflationary Gap is a situation characterised by ........

Indian Economic System(PCS) Inflation

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Inflationary Gap is a situation characterised by:

excess of Aggregate Demand over Aggregate Supply at the full employmentlevel

gap between Galloping Inflation and Runaway Inflation

Inflation coupled withrecession

Inflation that usually prevails in a developing country

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Explanation:

The inflationary gap exists when the demand for goods and services exceeds production due to factors such as higher levels of overall employment, increased trade activities, or increased government expenditure. This can lead to the real GDP exceeding the potential GDP, resulting in an inflationary gap