WHAT IS THE EFFET OF DEMONETISATION ON PPC
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effect of Demonetization on PPC;)
PPC curve doesn't shift in demonetization because our resources are not increasing or decreasing . They are equally efficient as before. But we lie in any point within the PPC curve because our production has been cut only for few months.
PPC will shift to the right as undeclared wealth will reduce resulting in the raise of taxable income of the government and also increased spending on infrastructure. All these will attract more foreign direct investment which enhances the resources of the country and leads to a rightward shift in PPC.
PPC curve doesn't shift in demonetization because our resources are not increasing or decreasing . They are equally efficient as before. But we lie in any point within the PPC curve because our production has been cut only for few months.
PPC will shift to the right as undeclared wealth will reduce resulting in the raise of taxable income of the government and also increased spending on infrastructure. All these will attract more foreign direct investment which enhances the resources of the country and leads to a rightward shift in PPC.
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MGNREGA is a policy or program of providing the 100 days employment in rural areas...
It's impact on PPC...
By this people got their employment thus...the economy that was lying under the PPC will now come closer or with in PPC....
But there will be no shift in PPC...because it will no create any resources ...
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