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Argument for and Against Economic Growth
Summary: Positive and negative effects of economic growth are examined. Positive: increase in production, more goods and services, improvement in material living standards, more wants are satisfied, more jobs, more government revenues. Negative: technologically driven growth leaves workers with inadequate skills, increased demand-pull and cost-pull inflation, benefits often are unevenly distributed.
Economic growth is the primary aim of economic management which occurs when the economy produces more goods and services in order to achieve higher living standards over a period of time. It is measured by the annual rate of change in real Gross Domestic Product (GDP) i.e. the percentage increase in the value of goods and services produced in an economy over a period of one year, adjusted for the rate of inflation. GDP measures the economy's performance by creating jobs, rasing living standards, and creating opportunities for the development of a nation. However, higher growth rates can also cause problems including inflationary pressures, a surge in imports, environmental degradation and greater income inequality and social division.
Generally, the effects of economic growth are positive as an increase in real GDP means an increase in output, there are more goods and services available to satisfy the needs...
This section contains 547 words (approx. 2 pages at 300 words per page) |
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