Business

Learn About Inflationary Gaps in Macroeconomics: Definition, Causes, and Effects of Inflationary Gaps

Written by the MasterClass staff

Last updated: Sep 29, 2021 • 3 min read

Macroeconomics is the study of the economy on a large scale—it deals with things like national income and long-run aggregate supply curves (LRAs) and aggregate demand curves. One important macroeconomic principle is the Keynesian theory of inflationary gaps.