Explanation Government spending is the expenditures made by the government for various purposes in the economy. There are government expenditures for the production process, for the operation of the government operated firms in the economy, and so on. Thus, the total expenditure made by the government for the society is known as the government spending or government expenditures, which is an important component of the aggregate demand of the economy. Option (d): Government expenditure is the total expenditure made by the government in the economy. According to the economic report of the president in 2017, it is identified that the income security expenditure of the government is 54 percent. For national defense, it is 15 percent and for education and health it is 16 percent. The expenditure for the interest on national debt is only 6 percent, which makes it the lowest share amongst the four. This means that option 'd' is the correct answer. Option (a): According to the economic report of the president in 2017, it is identified that the total government expenditure has fallen from 2009 onwards...

Business Economics Macroeconomics for Today

The category accounted for the lowest percentage of the total government expenditure.

Solution Summary: The author explains that the category accounted for the lowest percentage of the total government expenditure.

Macroeconomics for Today

10th Edition

ISBN: 9780357161494

Author: Irvin B. Tucker

Publisher: Cengage Learning US

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Question

Chapter 12, Problem 16SQ

To determine