A deflationary gap exists when: MCQ with Answer and Explanation

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A deflationary gap exists when:

A. aggregate demand exceeds full employment output

B. prices rise rapidly

C. aggregate demand is less than full employment output

D. the economy is above full employment

Answer: Option C

Solution (By JKSSB Mock Tests)

A deflationary gap occurs when aggregate demand is below the level needed for full employment output.

This question belongs to: Economy GK Economy Set 1

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Practice More Economy Set 1 Questions

Question #1

The 'Sustainable Development Goals' consist of how many goals?

A. 30

B. 21

C. 17

D. 8

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Correct Answer: Option C

Explanation:
The SDGs consist of 17 goals.

This question belongs to: Economy GK Economy Set 1

Question #2

The 'Sagarmala' programme was launched in:

A. 2017

B. 2013

C. 2015

D. 2016

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Correct Answer: Option C

Explanation:
Sagarmala was launched in 2015.

This question belongs to: Economy GK Economy Set 1

Question #3

Which of the following is NOT a type of public enterprise based on ownership?

A. Government company

B. Departmental undertaking

C. Public corporation

D. Private limited company with no government share

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Correct Answer: Option D

Explanation:
Public enterprises are owned wholly or substantially by the government and include departmental undertakings, public corporations and government companies. A purely private limited company is not a public enterprise.

This question belongs to: Economy GK Economy Set 1

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