Inflationary gap:

CA Foundation · Business Economics · MTP · January 2025
Inflationary gap:
(A) A. raises the level of output
(B) B. does not impact the level of output
(C) C. raises the general price level
(D) D. both (b) and (c)

Suggested Answer and Working Notes:

Correct Answer: Option (D)

D. both (b) and (c)

Topics: Business Cycles

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