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 ▸

Why are Monopolies able to profit maximise?


To what extent do the main macroeconomic objectives conflict?


How can get my essays into level 5?


Explain what is meant by the term ‘negative externality’ and explain how excessive consumption of alcohol leads to negative externalities.