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 ▸Explain the main barriers that LEDC's face when attempting to achieve stable, long-term growth
What are the main tools to used to meet the key economic objective of ecomic growth?
Tax incidence: how is a tax borne between consumers and producers?
Explain how a government can use fiscal policy to help an economy recover from a recession.