An inflationary gap exists when: MCQ with Answer and Explanation

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An inflationary gap exists when:

A. aggregate demand is less than full employment output

B. aggregate demand exceeds full employment output

C. actual output is below potential output

D. unemployment is high

Answer: Option B

Solution (By JKSSB Mock Tests)

An inflationary gap occurs when aggregate demand exceeds what the economy can produce at full employment.

This question belongs to: Economy GK Economy Set 1

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Question #1

The 'Department for Promotion of Industry and Internal Trade' is under which ministry?

A. Ministry of Finance

B. Ministry of MSME

C. Ministry of Commerce and Industry

D. Ministry of Heavy Industries

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Correct Answer: Option C

Explanation:
DPIIT is under the Ministry of Commerce and Industry.

This question belongs to: Economy GK Economy Set 1

Question #2

Primary deficit is equal to fiscal deficit minus:

A. subsidies

B. tax revenue

C. interest payments

D. capital expenditure

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Correct Answer: Option C

Explanation:
Primary deficit = fiscal deficit - interest payments.

This question belongs to: Economy GK Economy Set 1

Question #3

The 'GeM' portal is operated by which organization?

A. Ministry of Finance

B. NITI Aayog

C. Ministry of Commerce and Industry

D. RBI

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Correct Answer: Option C

Explanation:
Government e-Marketplace is operated under the Ministry of Commerce and Industry.

This question belongs to: Economy GK Economy Set 1

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