What are the disadvantages and advantages of economic growth?

GRUBBES Pros - Higher income tax SO less of a budget deficit, more public funding which could increase AS and reduce Y inequality Evaluate: Laffer curve, LT increase, little evidence it does (depends on what type of G) Pros - Reduces unemployment Evaluate: But it increases inflation, also depends how growth generated (INDIA - CAPITAL; CHINA - LABOUR) Cons - Environment degradation (China) so negative externality Evaluate: Can internalize it through higher taxes CONCLUSION: COMETS

AC
Answered by Abi C. Economics tutor

6688 Views

See similar Economics A Level tutors

Related Economics A Level answers

All answers ▸

Explain the impacts of a fall in interest rates on the rate of GDP growth of a country.


Explain how to calculate Price Elasticity of Demand


What is a balance of payments deficit and why might this be damaging to the economy?


Are monopolies more efficient than firms under perfect competition?


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