Question

What is likely to be the impact of efforts towards reducing unemployment on the production potential of the economy? Explain.

Answer 1

1.Production potential will increase because when employment is increased, income is increased.. when income is increased demand and investment will increase... with increase in investment production capacity will increase.

Answer 2

Unemployment is the biggest problem of the current Indian economy and it is constantly creating problems for the growth of Indian economy , since we got our independence.

If we reduce the unemployment ,it will surely help to develop our national economy and the annual GDP will also increase.

That's why the economic chairpersons of our country are constantly working on new agendas,in order to reduce the unemployment in our country.