'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

1622 Views

See similar Economics A Level tutors

Related Economics A Level answers

All answers ▸

How are interest rates used by the Monetary Policy Committee to control inflation?


Must I take Economics for my GCSES before A-levels? If not, will the catching up be difficult?


Explain two ways in which central banks use monetary policy to influence the economy.


Evaluate whether monetary policy is the best method of reducing inflation.


We're here to help

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