What does X represent?

By: |Published on: Oct 23|Categories: Economics JAMB| 0 comments

A. recessionary gap
B. GNP gap
C. inflationary gap
D. deflationary gap

Correct Answer:

Option C – inflationary gap

Explanation

Point X represents the inflationary gap as seen in the diagram above. The inflationary gap happens as a result of excess demand.

 

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