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Question : 16
Total: 46
In the given figure, what does the gap ' KT ′
Solution:
The gap 'KT' represents the excess demand or inflationary gap.
Increase in taxes: The government should impose new taxes and raise the rate of existing taxes.
Increase public debt: The government should increase public debt or borrowing.
Increase in taxes: The government should impose new taxes and raise the rate of existing taxes.
Increase public debt: The government should increase public debt or borrowing.
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