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The booms and the busts of the business cycle – Introduction to AD – AS models – Digging a Little Deeper
![Illustrate the following graphically. a. Fiscal policy eliminates an inflationary gap. b. Fiscal policy destabilizes the economy. c. Fiscal policy only partly eliminates a recessionary gap. | Homework.Study.com Illustrate the following graphically. a. Fiscal policy eliminates an inflationary gap. b. Fiscal policy destabilizes the economy. c. Fiscal policy only partly eliminates a recessionary gap. | Homework.Study.com](https://homework.study.com/cimages/multimages/16/untitled_1_07-08-20211016502248153279461.png)
Illustrate the following graphically. a. Fiscal policy eliminates an inflationary gap. b. Fiscal policy destabilizes the economy. c. Fiscal policy only partly eliminates a recessionary gap. | Homework.Study.com
Study Points: Concepts of Inflationary and Deflationary GAPS and how these can be wiped out by the government
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3.2 (Macro) Creating & eliminating deflationary gap (monetarist/new classical model); 3.3 Deflation - YouTube
![The Multiplier Effect and the Recessionary and Inflationary Gaps – Principles of Economics: Scarcity and Social Provisioning (2nd Ed.) The Multiplier Effect and the Recessionary and Inflationary Gaps – Principles of Economics: Scarcity and Social Provisioning (2nd Ed.)](https://openoregon.pressbooks.pub/app/uploads/sites/29/2020/06/9.jpg)
The Multiplier Effect and the Recessionary and Inflationary Gaps – Principles of Economics: Scarcity and Social Provisioning (2nd Ed.)
![Inflationary gap & Deflationary gap https://www.youtube.com/channel/UC6l192YKVDQKDImj3UpALTA - YouTube Inflationary gap & Deflationary gap https://www.youtube.com/channel/UC6l192YKVDQKDImj3UpALTA - YouTube](https://i.ytimg.com/vi/TMhxmGqDd-U/sddefault.jpg)
Inflationary gap & Deflationary gap https://www.youtube.com/channel/UC6l192YKVDQKDImj3UpALTA - YouTube
![22.3 Recessionary and Inflationary Gaps and Long-Run Macroeconomic Equilibrium – Principles of Economics 22.3 Recessionary and Inflationary Gaps and Long-Run Macroeconomic Equilibrium – Principles of Economics](https://open.lib.umn.edu/app/uploads/sites/180/2016/05/8f6d2862c7721f3972fbc0ad1378d2c2.jpg)
22.3 Recessionary and Inflationary Gaps and Long-Run Macroeconomic Equilibrium – Principles of Economics
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