Q: The situation where the equilibrium level of real GDP falls short of potential GDP is known as
(a)Recessionary gap
(b)Inflationary gap
(c)Demand-side inflation
(d)Supply-side inflation
Correct Answer: (a)
The correct answer is (b) 'inflationary gap (mudasfiiti antaraal)'. This question from the Indian Economy domain tests knowledge of National Income & Economic Growth.