The contribution of wholesale and retail trade and services has more or less remained stable while that of building and contribution rose sharply from 5.3 per cent in the 1960s to 8.3 per cent in the 1970s, but fell consistently, thereafter, to 1.8 per cent during 2001–2009.
In theory, economic activity is stimulated by maintaining observed real interest rates, which are obtained by subtracting inflation expectations from the nominal interest rate, at lower levels than the natural rate of interest, which is the real interest rate at which the economy neither accelerates nor decelerates; as the output gap improves, upward pressure on prices is generated.