Question

The growth in the share of government can be attributed to

a) political electioneering
b) an inflation-linked increase in public expenditures
c) public sector labour unions demanding above inflation salary increases for 2017
d) high income-elasticities for certain types of government expenditures

Answer 1

The growth in the share of government can be attributed to high income-elasticities for certain types of government expenditures.

So, the correct answer is D.