Illustrate the following graphically. a. Fiscal policy eliminates an inflationary gap. b. Fiscal policy destabilizes the economy. c. Fiscal policy only partly eliminates a recessionary gap. | Homework.Study.com
Inflationary and Deflationary Gap (With Diagram)
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GDP GAP /inflationary GAP// .Deflationary gap //full explained through Ad -As model with diagram. - YouTube
Draw and aggregate supply and aggregate demand graph showing a inflationary gap. Explain how the non-interventionists would restore long-run equilibrium. | Homework.Study.com
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3.2 (Macro) Creating & eliminating deflationary gap (monetarist/new classical model); 3.3 Deflation - YouTube
In a self-regulating economy, inflationary gaps are automatically eliminated in the long run by: a. decreases in wage rates that cause short-run aggregate supply to shift rightward. b. decreases in wage rates
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Inflationary and deflationary gaps
Inflationary and deflationary gaps
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Use a diagram to illustrate and explain an economy in which AD decreases as the economy is self-regulating out of an inflationary gap. | Homework.Study.com
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