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 ▸

What is demand and supply in Economics?


In the UK 7% of children are privately educated compared with 24% in Japan. Evaluate whether the provision of education should be left solely to market forces.


What is price elasticity of demand and how does it affect equilibrium prices and quantities?


Describe a positive externality