2.5.4 The Impact of Economic Growth Flashcards
1
Q
What are the benefits of economic growth
A
- Higher living standards
- Lower unemployment
- Increased Gov spending or national debt
- Accelerator effect - due to increased investment
- Greater business profits
- Increased savings
2
Q
Costs of economic growth
A
high inflation + interest rates = demand pull inflation
Environmental effect
Unequitable growth
