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

6575 Views

See similar Economics A Level tutors

Related Economics A Level answers

All answers ▸

Describe and explain the main differences between Perfect Competition and Monopoly market structure.


What are the possible effects of a decrease in the interest rate set by the central bank?


How do you write good analysis chains of reasoning?


Define market failure and give two examples in which this may occur.


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:

© 2025 by IXL Learning