An inflationary gap, is the amount by which the actual gross domestic product exceeds the potential full-employment GDP.

Three measures to reduce this gap are :

(i) Fiscal Policy : Fiscal policy is the expenditure and revenue (taxation) policy of the government to accomplish the desired objectives.

In case of excess demand (when current demand is more than aggregate supply at full employment), the objective of fiscal policy is to reduce aggregate demand.
(ii) Monetary Policy : Monetary policy of the central bank of a country is to control the money supply and credit in the economy. Therefore, it is also called Central Bank's Credit Control Policy. Money broadly refers to currency notes and coins whereas credit generally means loans, lie., finance provided to others at a certain rate of interest. Monetary measures (instruments) affect the cost of credit (i.e., rate of interest) and availability of credit. Thus, it helps in checking excess demand when credit availability is restricted and credit is made costlier.
(iii) Miscellaneous : Other anti-inflationary measures are import promotion, wage freeze, control and blocking of liquid assets, compulsory savings scheme for households, increase in production by utilising idle capacities, etc.