'Is Economic growth purely beneficial?'

Yes (beneficial):

-Increase in GDP, increase in disposable income, increase in standard of living, increase in consumption, increase in AD --> multiplier effect

Depends on who experiences the economic growth, if it results in greater disparity between social classes it may lead to unrest

-Producing more goods and services, relying on importing less, so less volatile to exogenous shocks, greater price stability 

No (not always beneficial):

-Greater production of goods and services increase carbon emissions which is a negative externality on a third party

-It also depends on how much spare capacity remains in the economy (is then shown with a diagram)

NM
Answered by Naim M. Economics tutor

2003 Views

See similar Economics A Level tutors

Related Economics A Level answers

All answers ▸

How can the Central Bank use Monetary Policy to achieve Economic Prosperity


Using your knowledge of both traditional economic theory and behavioural economics, assess policies that the Government might use to implement healthier diets across young people. (25)


What is the definition of fiscal policy and what are the main differences between an expansionary fiscal policy and contractionary fiscal policy


Why can customs unions lead to higher prices for consumers?


We're here to help

contact us iconContact ustelephone icon+44 (0) 203 773 6020
Facebook logoInstagram logoLinkedIn logo

MyTutor is part of the IXL family of brands:

© 2026 by IXL Learning