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

6999 Views

See similar Economics A Level tutors

Related Economics A Level answers

All answers ▸

How does income affect the Demand curve?


Brainstorm whether the NHS is an example of Government failure


Discuss the extent to which recent changes in monetary policy have impacted upon the UK economy


Explain why monopolies may be an undesirable form of market structure


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