2.5.4 Impact of Economic Growth

1. Costs of Economic growth: Problems with ... : ... causes spikes in prices, which could mean bad planning or cutting corners as people don't expect the economy to grow at that rate (5, 6)
6. Benefits to ... : Incomes rise, People will save money, Increased job confidence, Increased spending on durables, More employment opportunities and Wages rise- so firms hold onto their staff (9)

2. Benefits to current and future ... : As incomes rise people will feel better off, Poverty rates will fall and firms may use cleaner technology (as they can afford to) (6, 9)
3. Costs of Economic growth: ... dislocation and stress: Not everyone will have increased income, which could cause increased debt for some as they try to keep up with society (6)
4. Benefits to ... : Increased revenues and profits, Increased confidence to invest and they take on more workers (5)
5. Benefits to the ... : More tax revenue, More VAT, more capital gains and corporation tax and there is lower unemployment benefits (10)
7. Costs of Economic growth: The unwaged and unskilled people are less likely to benefit (but wealth could trickle down) (6, 10)
8. Costs of Economic growth: ... in the economy: At high income and demand there will be little spare capacity in the economy, so the price of labour and fuel rises (11)

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