Edexcel A Level Economics A:復(fù)習(xí)筆記2.5.4 The Impact of Economic Growth

Category: A-level課程, 教材筆記, 福利干貨 Date: 2022年9月27日下午2:57

Economic growth?is considered to be the main contributor to an improvement in the?standards of living
Due to the?negative aspects?of economic growth, there is much controversy about maintaining it as a central?macroeconomic aim
- Instead, arguments for a focus on?societal well-being?are gaining traction

A Table Summarising the Benefits & Costs of Economic Growth

Benefits of Economic Growth	Costs of Economic Growth
Increased incomes?lead to better standards of living	Rising aggregate demand causes?demand pull inflation;?purchasing power?of people on fixed incomes may fall
Decreased levels of absolute poverty	Lack of equity?in the distribution of income - the rich may get richer and the poor poorer
Improvement in the quality/quantity of environmentally friendly technologies	Environmental damage caused by?negative externalities of production
Higher sales revenue for firms and greater profits	Increased inflation?can harm export sales
Increased investment?by firms increases the potential output of the economy	Decreased export sales may lead to a delay in investment?by firms
Reduced expenditure by governments on benefits	Increased income usually leads to?greater consumption of demerit goods
Higher government tax revenue?due to rising incomes and surging?corporate profits	Greater output often requires?more time from workers?and can decrease leisure time and?well-being
Increased employment resolves some of the negative social impacts of unemployment