What are some different transmission mechanisms through which negative agricultural shocks affect India's GDP? I. Declines in agricultural output reduce GDP. II. A fall in agricultural output causes lower incomes for farmers who consume fewer goods and services causing GDP to fall even further. III. Declines in the agricultural sector cause declines in the purchases of agricultural equipment.

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Quizplus · Accepted Answer

All three statements are correct as they describe different ways in which negative agricultural shocks can impact GDP: directly through reduced output, indirectly through reduced consumption by farmers, and through reduced demand for agricultural equipment.

What Are Some Different Transmission Mechanisms Through Which Negative Agricultural