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Draw and aggregate supply and aggregate demand graph showing a inflationary gap. Explain how the non-interventionists would restore long-run equilibrium. | Homework.Study.com
Explain the concept of Inflationary Gap. Explain the role of Repo Rate in reducing this gap.ORExplain the concept of Deflationary Gap and the role of Open Market Operations in reducing this gap.
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Recessionary and Inflationary Gaps and Long-Run Macroeconomic Equilibrium
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Suppose an economy has an inflationary gap. a. Illustrate this using a graph with LRAS, SRAS, and AD curves. Identify the equilibrium price level, real GDP, and the output gap in your