44490
Government Spending
- Governments View on
Market Failure
- Countries with high level state
intervention-GS forms higher
proportion of AD
- Countries with high level state
intervention-GS forms higher
proportion of AD
- Level of Economic Activity
- GS may rise if there is
high unemployment
- GS decrease if there is a
high inflation rate
- GS may rise if there is
high unemployment
- Desire to please Electorate
- Voters put pressure on
government to spend money
- May increase GS to win
political support
- Voters put pressure on
government to spend money
- Other
- War, terrorist attacks,
crime, threat increase GS
- War, terrorist attacks,
crime, threat increase GS
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