If total injections are less than total withdrawals at full- employment national income, then there will be an inflationary gap.

Question

Quizplus · Accepted Answer

If total injections are less than total withdrawals at full-employment national income, it leads to a deflationary gap, not an inflationary gap, because it indicates that the economy is not utilizing all its resources efficiently, leading to lower demand and output.

If Total Injections Are Less Than Total Withdrawals at Full-