Economic growth
Benefits
Higher Average Incomes
Money spent on environment
Lower Unemployment
Investment
Lower Government borrowing
costs
Inflation
Current account Deficit
Boom and Bust Economic Cycles
Environmental Costs
Inequality
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Measured by GDP
Nominal GDP
Real GDP
Nominal GDP-Inflation
NE+NI+NO
Increased output therefore increased pollution
cause health problems like asthma
speed up depletion of non-renewable resources
growth help richer people more than the poor
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If AD increases faster than AS economic growth is unsustainable
Demand increases too quickly firms will push up prices
causes increase in spending on imports therefore causing a deficit on the current account
If economic growth is unsustainable then high inflationary growth and followed by a recession
Enables consumers to enjoy more goods and services
better standards of living
encourages investment and therfore encourages a virtuous cycle of econ growth
firms tend to employ more workers
higher output and positive econ growth
Creates higher tax revenues
less money spent on benefits
Improved public services
Lower government Debt
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Higher Real GDP society can give more resources to recycling and renewable resources