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 ▸

Are taxes an effective way to stop people smoking?


What is fiscal policy?


Why is the marginal return curve twice as steep as the average revenue curve in microeconomics firm theory?


Please can you explain the labour market?