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Having economic growth can be very advantages for a country because it decreases the level of unemployment and gives the majority of the population to enjoy a better standard of living. But, there are some drawbacks when it comes to a high rate of economic growth.
Inflation Risk :
If there’s a high rate of economic growth, there could be a negative impact on the economy because it will lead to inflation.
If there is a high growth rate with a high inflation, the growth rate can hardly be counted. It will result in a rise in interest rates which will also reduce productivity within the country. When this occurs, there will be a Balance of Payment deficit because imports will be greater than exports.
Inequalities of Wealth and Income Distribution :
When an economic growth occurs, there is a group of people who are taking advantage of it and another group of people who are having bad impacts from it. In other words we can say that the rich people gets richer and richer......
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Title: Consequences Of A High Rate Of Economic Growth
Approximate Word Count: 390
Approximate Pages: 2 (250 words per double-spaced page)
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