Indian Economy (B.Com) 5th Sem Previous Year Solved Question Paper 2022

A stagnant economy refers to a situation in which there is little to no growth or significant movement in economic indicators such as GDP (Gross Domestic Product), employment, and consumer spending. It is characterized by a prolonged period of low economic activity, often resulting in high unemployment, reduced consumer and business confidence, and minimal investment. Stagnant economies may be influenced by factors like recession, government policies, or external shocks, and they can have negative effects on a country’s overall well-being. A stagnant economy can have several detrimental effects on a country. Prolonged economic stagnation can lead to high levels of unemployment, as businesses are reluctant to hire and may even lay off workers. This, in turn, can create financial hardship for individuals and families, impacting their standard of living and overall well-being. Stagnation can also result in reduced consumer and business confidence. Consumers tend to cut back on spending when they are uncertain about the future, which further depresses economic activity. Businesses may delay expansion plans and investment, contributing to a vicious cycle of low economic growth.