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Figure 15.1 "Government Expenditures and Revenues as a Percentage of
GDP" shows total government expenditures and revenues as a percentage
of GDP from 1929 to 2007. All levels of government are
included. Government expenditures include all spending by government
agencies. Government revenues include all funds received by government
agencies. The primary component of government revenues is taxes;
revenue also includes miscellaneous receipts from fees, fines, and other
sources. We will look at types of government revenues and expenditures
later in this chapter.
Figure 15.1 Government Expenditures and Revenues as a Percentage of
GDP

Government expenditures and revenues have risen dramatically as a
percentage of GDP, the most widely used measure of economic activity.
Source: U.S. Department of Commerce, Bureau of Economic Analysis,
NIPA Tables 1.15 and 3.1.
Figure 15.1 "Government Expenditures and Revenues as a Percentage of
GDP" also shows government purchases as a percentage of
GDP. Government purchases happen when a government agency
purchases or produces a good or a service. We measure government
purchases to suggest the opportunity cost of government. Whether a
Attributed to Libby Rittenberg and Timothy Tregarthen
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