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Inflation · UPSC CDS/OTA · Question 20 of 60

Inflation: A ‘deflationary gap’ implies

Step-by-step solution. Inflation for UPSC CDS/OTA.

Topic
Inflation
Subject
General Studies
Difficulty
Medium
Solve Time
45-60 sec

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Q · InflationMedium · 45s

A ‘deflationary gap’ implies:

TopicInflation
Question Typemultiple choice
DifficultyMedium
Marking+1 / −0.33
Test Duration30 min

Step-by-Step Solution

The complete worked solution.

Every step explained - no skipped algebra.

The deflationary gap shows insufficient demand.

Final Answer: Option B - Aggregate demand < Aggregate supply at full employment
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A ‘deflationary gap’ implies - Inflation (General Studies) Solved Question