2.2.4.3 - Government Expenditure (G)
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Practice Questions
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What is government expenditure?
💡 Hint: Think about what the government pays for each year.
Name one component of aggregate demand.
💡 Hint: It begins with a 'G'.
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Interactive Quizzes
Quick quizzes to reinforce your learning
What does government expenditure mainly consist of?
💡 Hint: Think about what the government provides to citizens.
True or false: An increase in government expenditure can lead to job creation.
💡 Hint: Remember the impact of government projects on employment.
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Challenge Problems
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Critically analyze how different levels of government expenditure affect economic growth. Provide examples for both high and low expenditure scenarios.
💡 Hint: Consider real-world economic policies during recessions.
Given an economy at equilibrium with low government spending, propose a set of fiscal policies that the government could implement to boost aggregate demand. Explain how these policies would affect employment and GDP.
💡 Hint: Think about the relationship between government actions and consumer behavior.
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