--%>
Assignment Help - homework help

Surplus of AD over AS-Inflationary gap

Does a surplus of AD over AS always entail a condition of inflationary gap?

Answer: No. Inflationary gap takes place only if AD > AS equivalent to full employment level of employment.

   Related Questions in Macroeconomics

  • Q : Expanding consumption of a good I have

    I have a problem in economics on Expanding consumption of a good. Please help me in the following question. Your consumption of a good tends to expand if it’s: (i) Relative marginal utility surpasses its relative price. (ii) Total utility is les

    		•
  • Q : Perfectly substitutable outcome Firms

    Firms which serve customers who vision the firm’s output as perfectly substitutable for the outcomes of huge numbers of other firms confront: (i) Horizontal (that is, perfectly price elastic) demand curves. (ii) Predatory pricing from greater mo

    		•
  • Q : Cost of a foreign currency When cost of

    When cost of a foreign currency increases its supply too increases. Elucidate why?

    		•
  • Q : Problem of Financial Capital for direct

    The direct economic resources a farmer employs to generate avocadoes would not comprise: (I) human capital in form of expertise regarding growing avocadoes. (II) fertile land. (III) loans from a bank to finance SUCH year’s crop. (IV) machinery,

    		•
  • Q : What are the strength and weakness What

    What are the strength and weakness of using per capital national income? give explained answer for query

    		•
  • Q : Define Demand schedule What is Demand

    What is Demand schedule and how it is associated to demand curve?

    		•
  • Q : Adaptive expectations & Rational

    Question: Compare and contrast 'adaptive expectations' (Hubbard uses adaptive expectations)  and 'rational expectations' in modeling expectations. Answer:<

    		•
  • Q : Problem on full employment Does full

    Does full employment take place if AD = AS or S = I?

    		•
  • Q : Define Quantity of a good Quantity of a

    Quantity of a good: The quantity of a good which buyers demand is found out by the price of the good, income, the prices of associated goods, expectations, tastes, and the number of buyers.

    		•
  • Q : Competitive market What do you mean by

    What do you mean by the term Competitive market?

    		•