Answer to Question #113477 in Macroeconomics for Ayanda

Question

Which of the following statements is/are correct?

a) From 1960 to 2012 the nominal resource use by the general government in South Africa shows a rising trend although there are periods of decline.
b) It is important to distinguish between the empirical issue of expenditure growth and the reasons for it, and the normative question of what the appropriate size of government should be.
c) We have to distinguish between explanations of changes in the annual growth of government expenditure and the growing trend in the share of government in the economy.

Answer 1

a) From 1960 to 2012 the nominal resource use by the general government in South Africa shows a rising trend although there are periods of decline.