Question

The Indian economy saw its worst contraction in decades, with GDP shrinking by a record 23.9% and it is the sharpest contraction since quarterly figures started being published in 1996". Explain this statement clearly using graphs figures and data. Use bullet points. Answer only if you know. Please don't give any wage and lengthy answers. Be pointistic. DO NOT COPY FROM OLD CHEGG ANSWERS THEY ARE WRONG.

I HAVE POSTED MULTIPLE TIMES BUT NO ONE ANSWERED ACCORDING TO MY REQUIREMENTS.ANSWER ONLY IF YOU KNOW.DO NOT WASTE MY QUESTION .OR ILL REPORT YOU.

Answer 1

Indias GDP plunged to 23.9 percent amidst biggest lockdown which led to skyrocketing unemployment rate coupled with absence of government spending and tax cuts and lack of monetary stimulus. Also India lacks automatic stabilizers like unemployment insurance which further acentuated the dip in real GDP numbers in June quarter. Lack of business activities and absence of liquidity all led to sharp decline in consumption and investment and thus aggregate demand curves shifts leftwards leading to recession.