Q. “The excess of total government spending above the national income is known as”?

[A] Inflationary gap

[B] Deflationary gap

[C] GDP deflator

[D] Quantitative easing

Answer: A
Notes:

Explanation: The excess of total government spending above the national income (i.e., fiscal deficit) is known as inflationary gap. This is intended to increase the production level, which ultimately pushes the prices up due to extra-creation of money during the process.

Source: TMH Ramesh Singh