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Inflationary gap & Deflationary gap
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An economy is facing the inflationary gap shown in the accompanying diagram. a. To eliminate the gap, should the central bank use expansionary or contractionary monetary policy? b. How will the interest
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![Inflationary and Deflationary gap [A Level]](https://www.dineshbakshi.com/images/stories/economics_diagrams/inflationary-gap.jpg "Inflationary and Deflationary gap [A Level]")
Inflationary and Deflationary gap [A Level]
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