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ECONOMIC GROWTH (Advantage (Tax systems (higher income, greater tax…
ECONOMIC GROWTH
Advantage
fall in unemployment
increase in AD simultaneous with LRAS
national income increases
GDP per capita increases
higher living standard
when compared to our ancestors
Tax systems
higher income, greater tax revenue
government can spend more on merit and public goods
redistribute income and lower income inequality
improvement in the competitiveness of a country's export
result of higher productivity
improvement in human capital
rise of levels of education
Disadvantage
Poorer standard of living
not happy, too busy
neglect time with loved ones
overwork + depression
Unemployment
structural change in the economy to boost economy
structural unemployment
-ve externalities
pollution
Diagrams
Growth to remove deflationary/output gap
Growth to increase potential output