Government Expenditures, 2014-2015 Budget 952 358 4,762 Agencies of Education 78

Question

Government Expenditures, 2014-2015 Budget 952 358 4,762 Agencies of Education 785 Health and Human Services 25,006 The Judiciary 4,744 74,123 Public Safety and Criminal Justice 11,586 Natural Resources 727 Business and Economic Development Regulatory 73,989 General Provisions The Legislature Table 1. General Revenue Funds by Source Tax Sources Sales Gasoline Natural Gas Production 2,597,000,000 Utility Total Tax Collections Note: numbers will not add up because not all sources were given. 2014-2015 54, 879,000,000 1,352,000,000 2,495,000,000 912,,000,000 85,587,000,000 % Change 9.4 (37.4) (3.9) 1.9 6.6 2012-2013 50,141,000,000 2,159,000,000 895,000,000 80,265,000,000

Explanation / Answer

In this case where seems the source of money supply is not strong enough. At this situation low productivity and low purchasing power are common thing. To fight this type of situation fiscal policy may be usefull. Therefore government expenditure should be goes up. This affects production process with high production. As a result unemployment rate decrease and purchasing power goes up. At this moment public allocation for unemployment insurance, SNAP (food stamps), and Medicaid declines and the consumers use that fund in consumption or savings purpose.

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