Page 103 - Macroeconomics. book docx_Neat
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Example 3: Balanced Budget
If revenue = 300
Expenditure = 300
Budget is balanced.
9. Government Spending and Economic Growth
Government spending on infrastructure, education, and health increases productivity
and long-term growth. However, excessive spending may lead to high debt.
10. Conclusion
he government sector is a central component of macroeconomic activity. Through
budgeting, spending, and taxation, the government influences national income,
employment, price stability, and economic growth.
Multiple Choice Questions (MCQs)
Q1
In macroeconomics, the government sector mainly aims to:
A. Maximize private profits
B. Eliminate private markets
C. Support economic stability and development
D. Control household consumption
Answer: C
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