'Is Economic growth purely beneficial?'

Yes (beneficial):

-Increase in GDP, increase in disposable income, increase in standard of living, increase in consumption, increase in AD --> multiplier effect

Depends on who experiences the economic growth, if it results in greater disparity between social classes it may lead to unrest

-Producing more goods and services, relying on importing less, so less volatile to exogenous shocks, greater price stability 

No (not always beneficial):

-Greater production of goods and services increase carbon emissions which is a negative externality on a third party

-It also depends on how much spare capacity remains in the economy (is then shown with a diagram)

Answered by Naim M. Economics tutor

1669 Views

See similar Economics A Level tutors

Related Economics A Level answers

All answers ▸

Why there is liquidity trap in the reality?


What is the difference between law of diminishing returns to a factor and decreasing returns to scale?


Why is the long-run Phillips Curve vertical?


Why does the demand curve face downwards?


We're here to help

contact us iconContact usWhatsapp logoMessage us on Whatsapptelephone icon+44 (0) 203 773 6020
Facebook logoInstagram logoLinkedIn logo

© MyTutorWeb Ltd 2013–2025

Terms & Conditions|Privacy Policy
Cookie Preferences