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

Related Economics A Level answers

All answers ▸

How should I approach a data-response question?


What is expansionary fiscal policy and what effect does it have?


Why cannot firms in perfect competition sustain supernormal profits in the long run?


If we see the MPC decrease interest rates, what effects should we see in the economy