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Explore 🔥 Overheating of the Economy Explained | GDP Formula & Inflation #economy with 243,835 views, 7,614 likes, and 126 comments. Experience the impact of this video content that has captured audience attention.

- 🇮🇳 Join Unacademy for UPSC Prep https://unacademy.com/goal/upsc-civil-services-examination-ias-preparation/KSCGY/subscribe?plan_type=plus&referral_code=mrunal.org - 📚 Mrunal’s Economy Book now on Amazon https://link.amazon/B01w46a43 - 🔠💾Download topic wise UPSC PYQs for Pre & Mains https://unacademy.com/content/upsc/downloads/ - 📆 Free Annual economy updates Win26: Mrunal.org/win26 ### DESCRIPTION: In this short, Dr. Mrunal Patel, UPSC Educator and Economy Subject Expert, explains the overheating of the economy with an analogy: milk heated on too high a flame curdles, and an economy pushed to grow too fast is harmed too. GDP is the market value of new goods and services produced in India in one year. Its formula, C+I+G+X-M, also reflects aggregate demand: Consumption, Investment, Government expenditure (for example, buying grain from farmers at Minimum Support Price), plus Exports, minus Imports (not produced in India). After Covid, if the government and RBI cut loan rates and give tax relief, as under the Aatmanirbhar Bharat initiative, demand rises quickly but supply cannot catch up at the same speed. GDP appears to grow, but inflation also shoots up. This is overheating. Keynesian economics recommends counter-cyclical fiscal stimulus during a slowdown, but excess stimulus carries this risk. Useful for UPSC, SSC-CGL, State PSC, Banking, IBPS, RBI Grade B, CAPF, CDS, ACIO, APFC. For full economy preparation, see the courses on Mrunal.org. ### TAGS: overheating economy, economic overheating, UPSC economy, GDP formula, aggregate demand, C+I+G+X-M, inflation, demand pull inflation, Keynesian economics, counter cyclical fiscal policy, fiscal stimulus, RBI, Aatmanirbhar Bharat, Mrunal Patel, UPSC prelims, SSC CGL economy, RBI Grade B, IBPS, State PSC, free lecture ### Frequently asked / search topics answered in this video: - What is overheating of the economy? - How is GDP calculated using C+I+G+X-M? - Why can stimulus after Covid cause inflation? - What is the risk of counter-cyclical fiscal policy? ### ALTERNATIVE TITLES: 1. What is Economic Overheating? C+I+G+X-M and Demand | UPSC Prelims 2. When Fast GDP Growth Becomes Harmful | Overheating Concept for UPSC

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