Community and Government
Learn About Inflationary Gaps in Macroeconomics: Definition, Causes, and Effects of Inflationary Gaps
Written by MasterClass
Last updated: Oct 12, 2022 • 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.