A deflationary gap occurs when aggregate demand is less than aggregate supply. Deflationary gap depicts a situation in which total spending in an economy is insufficient to buy all the output that can be produced without unemployment occurring.
A deflationary gap occurs when aggregate demand is less than aggregate supply. Deflationary gap depicts a situation in which total spending in an economy is insufficient to buy all the output that can be produced without unemployment occurring.
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The Gold Standard Act of 1900
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Increase spending on Advertising.
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Central bank will sell securities to the commercial banks