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Mandarinka [93]
2 years ago
14

At which point in the business cycle is there the largest inflationary gap?

Social Studies
1 answer:
mojhsa [17]2 years ago
7 0

Answer:

An 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 elevated government expenditure. Against this backdrop, the real GDP can exceed the potential GDP, resulting in an inflationary gap.

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