- The economy produces capital and consumer goods.
- many economists stress that there are substantial costs to continuing growth and that increased growth will not necessarily increase standards of living. Costs like increasing pollution, growth of urban slums, depletion of natural resources and damage to the environment are concerning.
- There are also ethical issues in continuing rates of econ growth in that it is not a sustainable policy. There are fears that EITHER consumption rates will be lowered or the planet will no longer be able to sustain its growing population.
***** unless stated otherwise, economic growth is always long-term determined by supply-side..
the AD/AS model:
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