Question

Who introduced the concept of the Inflationary Gap?

Options

• Adam Smith

• J.M. Keynes

• Alfred Marshall

• Milton Friedman

Answer 1

J.M. Keynes

Explanation: 

J.M. Keynes introduced the concept of the Inflationary Gap in his pamphlet "How to Pay for the War", where he observed that excess government wartime spending over available goods caused prices to rise.