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Government Subsidies for Book Production

Question

Explain why government spending may be greater than tax revenue.

Category:

Taxes and subsidies

Frequently asked question

Preview Answer

I. 🍃Introduction
- Brief overview of the topic

II. Causes of low economic activity
- Explanation ➡️1: High spending on benefits due to low incomes and low spending
- Explanation ➡️2: Expansionary fiscal policy to increase demand and raise revenue

III. Government expenditure
- Actual expenditure higher than planned expenditure
- Possible reasons for the discrepancy

IV. Ageing population
- More pressure on pensions and healthcare
- Fewer workers leading to lower tax revenues

V. Government's desire to increase economic activity
- Importance of increasing economic activity
- Possible strategies to achieve this goal

VI. 👉Conclusion
- Summary of the main points
- Implications for the future

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