Answer to Question #113478 in Macroeconomics for Ayanda

Question

Which of the following statements is/are correct?

a) If the average income of voters is less than the income of the median voter, taxes would be relatively high.
b) The growth in the share of government can be attributed to an inflation-linked increase in public expenditures.
c)Peacock and Wiseman's displacement effect implies that after a national crises expenditure levels will not return to their pre-crises levels.
d) Micro models focus on the decision-making behavior of public individuals and institutions.

Answer 1

b) The growth in the share of government can be attributed to an inflation-linked increase in public expenditures.