Critically analyse the Output Gap between Actual and Potential GDP, and explain its policy implications for macroeconomic stability in India. (Answer in 150 words)

The Output Gap measures the difference between actual GDP and potential GDP. It indicates whether an economy is underperforming (negative gap) or overheating (positive gap).

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Your email address will not be published.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 *