list of macro-economic problems of Indian economy and comment on them in brief
The following are some major macro economic problems of Indian economy.
1) Unemployment- Unemployment refers to a situation when people people willing to work at a given wage rate cannot find jobs in an economy. The following steps should be taken by government to reduce unemployment in an economy.
a) 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.
b) To educate the labours and get quality work force. The Government should open night schools for the working mass. The farmers should be made aware of recent developments in technology by agricultural scientists too.
c) One of the most important way to control population is to curtail population.Birth control schemes have been introduced to tackle the issue of population
2) Population- The increasing population is a major macroeconomic problem for any economy. Following are the suggestions for its remedy.
a) Education- Education creates awareness among people which makes aware about their income and living standard.
b) Family planning awareness- Government can make people aware of the benefits of family planning to them as well as to the economy.
3) Inflation- Inflation is a phenomenon of rising general price levels and reducing purchasing power. Following are the suggestions for its remedy.
a) Increase in taxation- Government can increase various taxes levied on consumers to reduce the excess money supply in the economy to control the inflation.
b) 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.
1) Unemployment- Unemployment refers to a situation when people people willing to work at a given wage rate cannot find jobs in an economy. The following steps should be taken by government to reduce unemployment in an economy.
a) 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.
b) To educate the labours and get quality work force. The Government should open night schools for the working mass. The farmers should be made aware of recent developments in technology by agricultural scientists too.
c) One of the most important way to control population is to curtail population.Birth control schemes have been introduced to tackle the issue of population
2) Population- The increasing population is a major macroeconomic problem for any economy. Following are the suggestions for its remedy.
a) Education- Education creates awareness among people which makes aware about their income and living standard.
b) Family planning awareness- Government can make people aware of the benefits of family planning to them as well as to the economy.
3) Inflation- Inflation is a phenomenon of rising general price levels and reducing purchasing power. Following are the suggestions for its remedy.
a) Increase in taxation- Government can increase various taxes levied on consumers to reduce the excess money supply in the economy to control the inflation.
b) 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.