4 a. Explain the two ways that an economy could close an
inflationary gap. Explain what...
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Economics
4 a. Explain the two ways that an economy could close aninflationary gap. Explain what happened to price and GDP in eachsolution. Which “solution†created lower prices? List a pro and conof each “solutionâ€.
b. What policy would you put into effect to help reduce theinflationary gap in an economy like Canada? How would businessesand/or Canadians be effected?
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A The inflationary gap happen when there is a gap between aggregate demand and aggregate supply There is to close this inflationary gap the government take mainly some fiscal and monetary
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