VK IAS by Vikas kanukollu (VK) | United States America (US)

Create: 2021-09-03 Update: 2024-05-15 20:15:58

#Economy

Gs-3 : Economic Growth- GDP

🅾️What are the fundamentals of an economy?- Click here

🅾️🔰G= C+I+G+(X-M)-> C= will not rise to prepandemic level if govt doesnt help- even the growth we see now is because of base effect- i.e. Coming from negatives( because of last year lockdown) to positive- feels like a big growth but in reality it isnt- why?- it is still less when you compare it to pre pandemic levels.

🅾️So what is the article suggesting here? - increase the expenditure on I component not C. Because investment will create assets

✅The article also talks about Efficiency- ICOR- i.e. how much additional capital is required to produce one extra unit of the goods/ services. so naturally if this ratio is higher, it means one is wasting money- so review of the existing projects is good, but also focus on banking sector so that they exhibit more care while giving loans.

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VK IAS by Vikas kanukollu (VK)

Forwarded from UPSC Economy by VK IAS (Vikas Kanukollu)

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Telegram and Signal Havens for Right-Wing Extremists

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#Economy

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