In a transitioning economy, what is a downside of rapid economic growth?

In a transitioning economy, what is a downside of rapid economic growth?

A. Rapid economic growth can be difficult to regulate.

B. Rapid economic growth benefits only the wealthy.

C. Rapid economic growth usually leads to a crash.

D. Rapid economic growth may stifle cultural growth.

Answer – D. Rapid economic growth may stifle cultural growth.

The downside related to rapid growth of economy is related to the difficulties based on regulations which leads to the potential issues including environmental degradation, social unrest and the inequality in income levels. The rapid growth of economy is not able to provide effective benefits only to wealthy people as its leads to creation of the job opportunities and improvement of living standards for the individuals. The rapid levels of economic growth can also lead to huge crash based on the increasing unsustainability in the practices and lack of the guaranteed outcomes. Moreover, the rapid economic growth levels can provide appropriate levels of priority towards development of the economy that can reduce the cultural growth and the process of preserving the cultural traditions and heritage. The selected option is considered to be the most appropriate as the fast growth of economy can have a huge negative influence on the lack of appropriate cultural growth depicted by the country. The reason behind rejection of the option “Rapid economic growth can be difficult to regulate.” is that the economic growth levels can be effectively regulated by using different government regulations that are related to the economic aspects of the countries. The option “Rapid economic growth benefits only the wealthy.” as the statement cannot be considered to be true for different countries. The benefits related to economic growth can have a positive influence on all types of people that includes the rich and the poor people as well. The reason rejection of the option “Rapid economic growth usually leads to a crash.” is that the growth of an economy does not lead to crash as it can play an important role in ensuring that the populations of these economies can be influenced positively and their future can be improved as well.