Role of the State in Macroeconomy

Question 1

Major areas of expenditure percentages

Answer 1

Education - 12%
Defense - 6%
Pensions - 20%
Health care - 18%
Welfare - 15%
Transport - 2%
Protection - 4%

Question 2

Types of expenditure

Answer 2

• Capital government expenditure
• Tranfer payments

Question 3

what are the three types of tax?

Answer 3

Progressive tax higher, the income more you pay

regressive proportion of income paid in tax falls as the income of the taxpayer rises

Proportional tax same percentage

Question 4

marginals formula

Answer 4

MPW = MPS+ MPI + MPT

1/1-MPc

1/MpW