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

6382 Views

See similar Economics A Level tutors

Related Economics A Level answers

All answers ▸

Why are no supernormal profits made in perfect competition in the long run?


How can the central bank affect economic activity using monetary policy


Explain the difference between productive efficiency and dynamic efficiency.


I am not convinced of the inter-related nature of the economy. How could increased productivity in Europe impact upon British house prices?


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