Prepare a list of macro- economic problems of Indian economy and comment on them in brief
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Macro economic problems of Indian economy are : -
> INFLATION - Inflation is a phenomenon of rising general price levels and reducing purchasing power.
> INCREASE IN TAXATION - Government can increase various taxes levied on consumers to reduce the excess money supply in the economy to control the inflation.
> REDUCING GOVERNMENT EXPENDITURE - Government expenditure increases purchasing power of consumer without increasing output. It should be reduced so that money supply is decreased and output is increased to control the inflation.
> UNEMPLOYMENT- It refers to a situation when people people willing to work at a given wage rate cannot find jobs in an economy.
>HIGH PRODUCTION TARGETS - Government should aim for more GDP than the previous years. The process of increased production naturally calls for more employment for the people of he country.
> POPULATION - The increasing population is a major macroeconomic problem for any economy.
> EDUCATION - Education creates awareness among people which makes aware about their income and living standard.
> AWARNESS REGARDING FAMILY PLANNING - Government can make people aware of the benefits of family planning to them as well as to the economy.
HOPE IT HELPS
Macro economic problems of Indian economy are : -
> INFLATION - Inflation is a phenomenon of rising general price levels and reducing purchasing power.
> INCREASE IN TAXATION - Government can increase various taxes levied on consumers to reduce the excess money supply in the economy to control the inflation.
> REDUCING GOVERNMENT EXPENDITURE - Government expenditure increases purchasing power of consumer without increasing output. It should be reduced so that money supply is decreased and output is increased to control the inflation.
> UNEMPLOYMENT- It refers to a situation when people people willing to work at a given wage rate cannot find jobs in an economy.
>HIGH PRODUCTION TARGETS - Government should aim for more GDP than the previous years. The process of increased production naturally calls for more employment for the people of he country.
> POPULATION - The increasing population is a major macroeconomic problem for any economy.
> EDUCATION - Education creates awareness among people which makes aware about their income and living standard.
> AWARNESS REGARDING FAMILY PLANNING - Government can make people aware of the benefits of family planning to them as well as to the economy.
HOPE IT HELPS
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Answer:
The rise in inflation is due to rising wages and higher property and food prices. The decline in exports and rise in imports had caused the country to be current account deficit. While the earnings of the government are lower than the taxes they receive which makes them fiscal deficit.
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