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

6529 Views

See similar Economics A Level tutors

Related Economics A Level answers

All answers ▸

why is the profit maximising output where marginal cost (MC)= marginal revenue (MR)?


Using a diagram and an example, explain what a negative externality is and why it leads to market failure.


Define what a Demerit Good is and explain why they are often over-consumed in the free market.


Explain why an increase in exports leads to economics growth


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:

© 2025 by IXL Learning