Th4.5: ^^ Productivity and Growth Flashcards
1
Q
What do free market economists think of government spending?
A
it is wasteful and causes inefficiency
2
Q
What is the government able to enjoy when it provides goods?
A
economies of scale, improving productivity
3
Q
What three things can they spend money on in order to increase productivity and growth?
A
infrastructure
human capital
research and development
4
Q
Through spending, the government can create…
A
a multiplier effect and this can be focused on areas of a country with high unemployment, creating growth
