1. Government expenditures in the United StatesThe first table that follows shows approximate government expenditures as a percentage of GDP for selected years. For the same years, the first tablealso shows different categories of federal expenditures as percentages of total federal government expenditures. The second table shows governmenttax revenue as a percentage of GDP for the selected years. The second table also shows different categories of federal tax receipts as percentages oftotal federal tax receipts. (Source: "U.S. Government Printing Office.")Government Expenditures (GDP %)State andYear195019702020Year1950Federal16%197019%202031%Government Tax Receipts (GDP %)State andLocal7%10%Local7%10%Federal14%19%12%16%17%Income Security National Defense13%22%48%*Including transportation, agriculture, veterans' benefits, international affairs, housing, and so on.Expenditures as a Share of the Federal Government BudgetEducation Net Interest onand HealthFederal Debt2%IndividualIncome Taxes40%47%47%32%Which of the following statements are true? Check all that apply.40%11%Social InsuranceFederal Government ReceiptsTaxes11%11%23%15%38%CorporateIncome Taxes26%17%15%11%9%5%Excise Taxes3%19%8%Others*42%4%5%Others6%18%Income security, such as Social Security and Medicare, was the largest category of federal government spending in 2020.Total state and local government expenditures represented less than 5% of GDP in 2020.Federal taxes collected as a percentage of GDP were lower in 2020 than they were in 1970.As of 2020, the federal government financed most of its outlays with individual income taxes and social insurance taxes.14%

Fiscal Policy refers to the use of government spending and taxation to influence the economy. The…

Which of the following statements are true? Check all that apply. Income security, such as Social Security and Medicare, was the largest category of federal government spending in 2020. Total state and local government expenditures represented less than 5% of GDP in 2020. Federal taxes collected as a percentage of GDP were lower in 2020 than they were in 1970. As of 2020, the federal government financed most of its outlays with individual income taxes and social insurance taxes.

Which of the following statements are true? Check all that apply. Income security, such as Social Security and Medicare, was the largest category of federal government spending in 2020. Total state and local government expenditures represented less than 5% of GDP in 2020. Federal taxes collected as a percentage of GDP were lower in 2020 than they were in 1970. As of 2020, the federal government financed most of its outlays with individual income taxes and social insurance taxes.

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter11: Fiscal Policy

Section: Chapter Questions

Problem 19E

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