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 there any minuses to economic growth?
How can we use price elasticity of demand to determine the incidence of a tax on a good?
What is the opportunity cost of a good?
Assess the extent to which a depreciation of the Pound will positively effect economic performance within the Uk.