ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Economic growth increases state capacity and the supply of public goods. When economies grow, states can tax that revenue and gain the capacity and resources needed to provide the public goods and services that their citizens need, like healthcare, education, social protection and basic public services.

Detailed explanation-2: -Increased economic growth will lead to increased output and consumption. This causes an increase in pollution. Increased pollution from economic growth will cause health problems such as asthma and therefore will reduce the quality of life.

Detailed explanation-3: -When an economy is growing, it is a sign of prosperity and expansion. Positive economic growth means an increase in money supply, economic output, and productivity. An economy with negative growth rates has declining wage growth and an overall contraction of the money supply.

Detailed explanation-4: -loss of tax revenue, increased cost of unemployment benefits, loss of income for individuals, and. greater disparities in the distribution of income.