Enter your keyword

COACHING CENTRE UNIVERSAL COACHING CENTRE Let's join hands together in bringing Your Name in Elite officers list. JOIN US MORE THAN A MEET NEW FRIENDS AND STUDY WITH EXPERTS JOIN US Nothing is better than having friends study together. Each student can learn from others through by teamwork building and playing interesting games. Following instruction of experts, you and friends will gain best scores.
Admission open for KAS - Batch starts from September 20thIAS prelims cum mains classes starts from 1st September

ULP Click here! Click here! Classroom Programme NRA-CET Test Series Click here ! Click here!


Potential GDP

Define potential GDP and explain its determinants. What are the factors that have been inhibiting India from realizing its potential GDP?

Mains GS paper 3

Like Gross Domestic Product, potential GDP also represents the market value of goods and services, when the economy is operating at a high rate of resource use. 

Potential GDP is an estimate of full employment which was an assumption of Classical economic thought and that aggregate demand does not exceed aggregate supply.

Determinants of Potential GDP:         

∙         Investment: The investment rate in the country influences GDP growth. When there is a drop-in investment and resulting slowdown of capital accumulation potential GDP also reduces.

∙         Inflation: Economic growth coupled with the Inflation rate. Higher the Inflation higher will be the GDP.

∙         Productivity: Higher production will lead to an increase in employment, which in turn increases the purchasing power of the people and higher the GDP. If the production decreases, the employment decreases and the country will experience recession.

Factors inhibiting potential GDP of India:

  • Global Financial Crises: Global financial crises like, the recession will impact on GDP of a country. A Recession is a situation where economic activities are slow down. If economic activities the slowdown will experience low employment and low productivity.  
  • Infrastructure: Lack of infrastructure facilities also leads to declining in the GDP of India. For economic growth, infrastructure plays an important role. If the country fails to develop these facilities, the development works will be hampered and the country will not be prosperous.
  •  Capital investment:  Investment boosts the Economy. It is a process of capital formation by a producer or increase in the existing stock of capital. It generates income, helps in wealth creation, to meets the country’s financial goals, and ultimately to achieves economic development. So, in order to increase GDP, we should encourage more investment in the country. 
  • Depreciation of currency: A Decrease in the value of our country’s currency with that of foreign currency is known as depreciation. Depreciating the value of the currency will impact low productivity, imports will become costlier, political instability, and lack of investment. 

Thus, potential GDP is not directly measurable, theoretically, it sounds good but in practice it has some limitations. It assumes full employment which is just a myth in the country like India. Economic activities are not stable, fluctuations are happening in these activities.  

Some Toughts (27)

  1. added on 23 Apr, 2022

    Hot new pictures each day
    porn sex bizzare lusty grandma porn videos seka porn actress fattest woman in porn firry porn

  2. added on 27 Apr, 2022

    I was excited to discover this website. I want to to thank you for your time for this wonderful read!! I definitely liked every part of it and i also have you book-marked to look at new things on your website.

  3. added on 3 May, 2022

    sildenafil 150mg cheap – viagra usa viagra online order

  4. added on 9 May, 2022

    cheap prednisolone 5mg – prednisolone 20mg canada order cialis 5mg online

  5. added on 11 May, 2022

    order augmentin 625mg online – buy generic cialis 20mg cialis 5 mg

  6. added on 14 May, 2022

    order bactrim 960mg online cheap – sildenafil over the counter cost viagra 150mg

  7. added on 15 May, 2022

    viagra canada online pharmacy cheapest prescription drugs canada

  8. added on 16 May, 2022

    buy cephalexin 125mg online cheap – erythromycin 250mg us erythromycin brand

  9. added on 18 May, 2022

    order sildenafil 100mg – ivermectin price ivermectin 1

  10. added on 18 May, 2022

    buy modafinil 100mg online cheap purchase modafinil pills buy modafinil 100mg sale

  11. added on 19 May, 2022

    provigil 100mg generic buy modafinil pill

  12. added on 19 May, 2022
  13. added on 19 May, 2022

    purchase budesonide online – order budesonide without prescription disulfiram 500mg over the counter

  14. added on 19 May, 2022

    express rx pharmacy and medical supplies canadian 0nline pharmacy

  15. added on 19 May, 2022

    order provigil 100mg online modafinil us

  16. added on 20 May, 2022
  17. added on 20 May, 2022
  18. added on 21 May, 2022

    order generic provigil order modafinil 200mg online purchase modafinil without prescription

  19. added on 21 May, 2022

    order ceftin 500mg sale – buy methocarbamol 500mg generic cialis 20mg brand

  20. added on 21 May, 2022
  21. added on 21 May, 2022

    buy provigil pills buy provigil 100mg online cheap purchase provigil pill

  22. added on 22 May, 2022

    is erythromycin safe during pregnancy http://erythromycin1m.com/#

  23. added on 22 May, 2022
  24. added on 23 May, 2022

    provigil oral buy generic modafinil 200mg provigil for sale

  25. added on 23 May, 2022

    buy ampicillin 500mg online cheap – ampicillin 250mg pill tadalafil canada

  26. added on 23 May, 2022

    cost provigil 200mg order generic modafinil 100mg

Leave a Reply

Your email address will not be published.

The maximum upload file size: 512 MB. You can upload: image, audio, video, document, spreadsheet, interactive, text, archive, code, other. Links to YouTube, Facebook, Twitter and other services inserted in the comment text will be automatically embedded. Drop files here