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Introduction to Economics 2
Introduction to Economics 2 Deneme Sınavı
Introduction to Economics 2 Deneme Sınavı Sorusu #349592
Introduction to Economics 2 Deneme Sınavı Sorusu #349592
In the situation of deflationary gap, what causes the loss of production?
Underemployment
|
High taxes
|
Aggregate supply
|
Unplanned stocks |
Expenditures |
Yanıt Açıklaması:
The negative difference between the actual GDP and the potential GDP in an economy is the negative GDP gap or deflationary gap, which is the loss of production due to underemployment in that country. In such a situation where production factors do not participate into production, there is a possibility of increasing employment and income by increasing aggregate expenditures in the economy.
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