question archive 1)How do the economic policies or stock exchange affect our country? 2)What are four factors that can assist in assessing whether or not economic policies are good? 3)Are the economic policies of the Modi government very weak?
Subject:EconomicsPrice:2.88 Bought3
1)How do the economic policies or stock exchange affect our country?
2)What are four factors that can assist in assessing whether or not economic policies are good?
3)Are the economic policies of the Modi government very weak?
1)Economic policies has major impact on the growth of the economy. A good economic policy can lead the country to the path of economic growth. Economic policies such as openness to foreign trade and investment, lean fiscal policies and less government restrictions increase the growth of the economy. Applying the correct monetary or expansionary policy can increase the growth of the economy.
Stock market also has major impact over a country. When the stock market is bearish, investment in the economy decreases and consumer spending also falls which reduce the growth of the country whereas in case of bull market investment tends to increase and so does the economic growth.
2)The objectives of economic policies are to achieve the goals of the nation. So, if the objectives are achieved, then it shows that the nation is implementing good economic policies.
Factors that indicate whether the economic policies are good or not are:
3)
Economic policies are implemented with the aim of achieving the goals of the nation such as stability of prices, removal of unemployment state, and growth of the economy by increasing GDP.
Modi government could not achieve the goals for which economic policies were implemented in India.
? Demonetisation, an economic policy of Modi government, was not effective as it increased the state of unemployment in the country as the
employers were not able to pay cash to the daily wage workers and small farmers as India is an underdeveloped economy in which most
people depend on cash to operate their normal business operation.
? The government expenditure on printing new currencies enlarged the imbalances in the economy, which is responsible for stagnant economic
growth.
? Goods and services tax is also not effective as it is a dual control concept in which state and central government both charge tax separately on
a single transaction which adds cost to the business due to which many businesses declined such as Textile, Media, and Pharma industry.
? Modi?s economic policy is not good as it made the Indian economy a massive jobless economy with rising prices due to imbalances in
implementing policy.
?
Thus, it can be said that economic policies of the Modi government are weak.