A deflationary gap exists when there is a difference between the price level in an economy and a fall in the level of national income.

Name: A deflationary gap exists when there is a difference between the price level in an economy and a fall in the level of national income.
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A deflationary gap occurs when aggregate demand is less than aggregate supply at full employment, leading to unemployment and underutilized resources, not specifically due to a difference in price level and national income.

A Deflationary Gap Exists When There Is a Difference Between