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 ▸

Describe the impacts of the government implementing a sugar tax on fizzy drinks?


To what extent can financial regulation correct financial market failure?


Discuss the macroeconomic impacts of deflation on an economy.


With the help of a diagram, outline the long run effects of the coronavirus pandemic on the United Kingdom if there is no government intervention