What Is Inflationary Gap And Is Inflation Always Bad?
― Inflationary gapInflationary gap is the amount by which the real Gross domestic product, or real GDP, exceeds potential GDP. The real GDP is also known as GDP adjusted for inflation, because it measures the aggregate output in a country's income accounts in a given year, expressed in case year prices. On the other hand, the potential GDP is the quantity of real GDP when a country's economy is at full employment. ∙ Is inflation always bad?In case of inflation, general price level has [...].
