Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

Indian Economic Development: Indian Economy on the Eve of Independence

Question:

If aggregate demand exceeds aggregate supply at full employment level, the gap which occurs is known as

Options:

Deflationary gap

Excess demand

Excess supply

Inflationary gap

Correct Answer:

Inflationary gap

Explanation:

The correct answer is Option (4) → Inflationary gap