6. For those working under MGNREGA, the govt. has raised the minimum employment from 100 to 150 days during an year. How would it impact the actual and potential level of output in the economy?
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Those who work under MGNREGA they will get guranted employment for 120 days if they don't get employment, the government gave them the wages for them, if the people gets wages it impacts their economy
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Actual level of output of the economy is in direct proportion to employed persons in the nation. When employment increases, actual level of output also increases.
In the Production Possibility Curve (PPC), there is no shift when there in increase in employment, since it is already assumed that all of the present resources/employees are completely utilized. So, there is no rise in the potential level of output in the economy.
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