Th2.5: Economic Growth - The Government

Question 1

What will happen to tax revenues?

Answer 1

rise as more goods and services are being bought, more income is being earned and more profits being made

Question 2

^^ Referring to card one, what does this mean the government can do?

Answer 2

they have more money so can spend more on NHS, education e.t.c - the quality of these systems will be improved, and this will help to improve living standards

Question 3

What can it help to reduce?

Answer 3

the budget deficit - perhaps even bringing about a budget surplus which would allow money to be saved for future recessions

Question 4

However, what is a con of economic growth for the government?

Answer 4

people expect more from them i.e better education, better roads e.t.c