Answer to Question #148588 in Macroeconomics for muhammad zubair

Question

State whether the following statement is true or false and support your answer with facts and figure:
‘‘In the past few decades, primary sector has created maximum jobs in Pakistan.’’

Answer 1

There are various factors which determine the demand for the economy's output like consumption, investment and government purchase whereas the factors of production and the production fuction determine the supply of output. The real interest rate adjusts to ensure that the demand for the economy is goods equal the supply. At the equilibrium interest rate, the demand for goods and services equals the supply.

In my opinion the statement that, " In the past few decades, primary sector has created maximum jobs in Pakistan," are true because :-

1. Primary sector continues to be the largest employer because more than half of the workers in the country are working in the primary sector mainly in agriculture, producing only aquater of the GDP i.e Gross Domestic Product.

2. In contrast to this,the secondary and tertiary sectors produce three-forth of the produce whereas they employ less than half of the people