Effect of demonetization on ppc

 Impact of demonetization in India effect PPC of India. In short term PPC of India shift to Leftward.  Because in India there is billion dollar of black money.

In starting of demonetization (short period) India face many problems. In India everyone is not aware about internet banking of online payment people face many problem and do not use fuller ultilised of resources in short period. This cause PPC shift to leftward.

On the other hand after sometimes everyone know about Net banking and online payment this cause almost all payment made through online not through cash. This cause fuller utilization of resources. In this case PPC shift Right Ward.

Ans. The Goods And Services Tax (GST) will Effect the Ppc In both Long Run & Short Run. 

It is good for the long run as it will increase the production potential, GDP of country will also rise and ppc will shift rightward.

In short run It will effect the ppc and it will shift leftward as the indirect tax’s will be removed and the supplier will decrease production.