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 monopolies more efficient than firms under perfect competition?
Is price capping an effective way to deal with monopolistic power?
(a) Explain what is meant by monopoly and, using a diagram, explain why a monopoly may have lower average costs of production than a firm in perfect competition. [10]
Explain how The Monetary Policy Committee controls inflation within the UK economy.