Economic Growth Flashcards
1
Q
Benefit - Employment Effects
A
People have higher wages because there will be more money in the circular flow of income. As well as this, higher wages will lead to more tax, helping those with less, leading to a reduce in inequality.
2
Q
Benefit - Higher Living Standards
A
More money in the economy means there will be more money to help people living in poverty and improve development outcomes. Government will be more willing to improve homeless shelters and get people off the streets.
3
Q
Benefit - Tax/Government collections will rise
A
More money to the government means they can set up more programmes which will help those in need eg homeless, disabled, poor, pensions, etc.
