Multiple Choice Questions on The amount by which the equilibrium level of real GDP exceeds the full employment level of........... for CAPF (AC) Exam Preparation

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Multiple Choice Questions

The amount by which the equilibrium level of real GDP exceeds the full employment level of...........

Indian Economic System Inflation
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    The amount by which the equilibrium level of real GDP exceeds the full employment level of GDP is called

    This questions was previously asked in
    CAPF 2021 Paper-1
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    Explanation:

    inflationary gap.

    • An inflationary gap occurs when a country's actual GDP is greater than its potential GDP, which means there is more demand for goods and services than there is available supply.
    • In other words, it occurs when there is an increase in aggregate demand but not enough of an increase in supply to match it.

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