INTRODUCTION TO ECONOMICS II (İKTİSADA GİRİŞ II) - (İNGİLİZCE) Dersi Fiscal Policy and Aggregate Expenditures soru detayı:

PAYLAŞ:

SORU:

What kind of economic environment is named as inflationary gap?


CEVAP:

Sometimes, an economy may experience instabilities because of excess
aggregate spending, as well. Just as when the demand of a good is more than its supply, the price of that good increases; in case of aggregate spending overcomes the value of realized production, general
price level also starts to rise from macroeconomic point of view. We name this kind of economic environment as inflationary gap.