Discuss the importance of Potential GDP as a policy tool and evaluate factors that inhibit India from achieving it. (Answer in 150 words)

Potential GDP represents the maximum sustainable level of output an economy can achieve when all resources — labour, capital, and technology — are fully employed without causing inflation.

This entry was posted in Uncategorized and tagged . Bookmark the permalink.

Leave a Reply

Your email address will not be published. Required fields are marked *