Question

5. Do you think there are any disadvantages of
economic diversity? Give reasons for your answer.
HOTS question
Following points can be covered to frame the answer:
1. Meaning of economic diversity
2. The variations in economic diversity (poor to rich)
3.Influence of pandemic on economic diversity
4.Steps to be taken to make the economic diversity
uniform in the country (literacy, government schemes
etc.)​

Answer 1

Answer:

The major disadvantage of economic growth is the inflation effect. Economic growth will cause aggregate demand to increase. If aggregate demand increases faster than the increases in aggregate supply, then there will be an excess demand but a shortage in supply in the economy