Question

Define potential GDP and explain it's determines. What are the factors that have been inhibiting India from realizing it's potential GDP ?​

Answer 1

Explanation:

Definition: Potential gross domestic product (GDP) is defined in the OECD's Economic Outlook publication as the level of output that an economy can produce at a constant inflation rate. Although an economy can temporarily produce more than its potential level of output, that comes at the cost of rising inflation.