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
Answered by Abi C. Economics tutor

6941 Views

See similar Economics A Level tutors

Related Economics A Level answers

All answers ▸

What would be the impact of an outbreak of bird flu on the price of eggs in the UK?


What is the difference between an elastic good and an in-elastic good?


What is the effect of reducing interest rates on a currency’s exchange rate?


Evaluate the likely microeconomic effects of government intervention in the UK housing market.


We're here to help

contact us iconContact ustelephone icon+44 (0) 203 773 6020
Facebook logoInstagram logoLinkedIn logo

MyTutor is part of the IXL family of brands:

© 2026 by IXL Learning