Explanation:

- Option 1: Deficit Demand

- A deflationary gap occurs when the aggregate demand in an economy is less than its aggregate supply at full employment.

- This creates a deficit in demand, leading to lower production, underutilized resources, and unemployment.

- Your choice highlights this deficit in demand correctly.

- Correct Answer: Deficit Demand

- Option 2: Surplus Demand

- Surplus demand, also known as inflationary gap, is when demand exceeds supply at full employment, causing inflation.

- Option 3: Full Employment

- Full employment occurs when all available labor resources are being used efficiently, not specifically related to a deflationary gap.

- Option 4: None of these

- This option is incorrect as a deflationary gap specifically relates to deficit demand.