costs and benefits of Econ growth

Question 1

benefits of Econ growth

Answer 1

-higher disposable income as firms pass profits onto workers in the form of higher wages
-higher profits for firms
-higher economic growth
-fiscal dividends
-higher living standards (I=o=e)

Question 2

costs of economic growth

Answer 2

-demand-pull inflation
-income inequality: one-sector dominant, rural vs urban, capital intensive
-environmental costs (resource dep/deg, pollution)
-current account deficit