Question

How can we achieve parity between actual level output and potential level output in the indian economy ? Suggest two possible steps.

Answer 1

India is a country having a huge population, so on the basis of the population, the potential level of output should also be high enough, but in Indian economy, which is calculated theoretically by the strength in capacity should be very high but the present scenario,on the basis of calculation done by the practical output given are very low.

The reasons for the difference in these numbers are :-

• Unemployment.
• Lack of education.
• Corrupt politics resulting in unequal opportunities.