In this paper we review the linkages between the quality of public finances, that is, the level and composition of public expenditure and its financing via revenue and deficits, and economic growth. We review the various channels through which public finances affect growth and its underlying determinants (institutional framework, employment, savings and investment, innovation). The paper addresses the approaches used to assess the performance and efficiency of public spending, and surveys the empirical findings on the impact of fiscal variables on sustained economic growth.

1) Name a good that is price inelastic (in a western context)

2) Name a good that is price elastic (in a western context)

3) What best describes Economies of Scale

4) What characterizes an oligopoly? Give an example of what this might look like.

5) What characterizes a pure monopoly. Give an example of what this might look like.

6) Compare nominal and real wages, which is true?

7) How have economists traditionally defined "economic growth," and how is that different from

"living standards growth"?

8) Please write "aggregate supply" and "aggregate demand" next to the correct definition

The sum total of all goods and service firms and governments are willing and able to produce at

any level (aggregate supply)

of domestic goods and services that governments import at any given price

level

9.) What happens when you increase the supply of money in a country?

10) Problems with GDP as a measure of wellbeing

Government spending may be borrowed (debt)

Doesn't include leisure time, non-market activities, environmental

Doesn't correlate perfectly with happiness (only until basic human rights are covered)