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Government Spending
Description
Economics (AD & AS and their interaction) Mind Map on Government Spending, created by halima13 on 12/04/2013.
No tags specified
ad & as and their interaction
economics
economics
ad & as and their interaction
Mind Map by
halima13
, updated more than 1 year ago
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Created by
halima13
over 11 years ago
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Resource summary
Government Spending
Governments View on Market Failure
Countries with high level state intervention-GS forms higher proportion of AD
Level of Economic Activity
GS may rise if there is high unemployment
GS decrease if there is a high inflation rate
Desire to please Electorate
Voters put pressure on government to spend money
May increase GS to win political support
Other
War, terrorist attacks, crime, threat increase GS
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