According to the Spending Allocation Model, What Happens If There

question 61

Essay

According to the spending allocation model, what happens if there is an increase in the share of GDP allocated to government purchases? What happens to the other spending shares?
According to the economic fluctuations model, what happens if there is an increase in government purchases as a share of GDP? What happens to the other spending shares?
Are the two models the same? What additional insight does the economic fluctuations model introduce?

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Definitions:

Stratificatory Differentiation

involves the division of society into layers or strata based on variables such as wealth, power, and prestige.

Vertical Differentiation

Refers to the process of ranking various products, services, or individuals based on quality or prestige rather than quantity or access.

Structural Functionalism

A sociological perspective that views society as a complex system whose parts work together to promote solidarity and stability.

Functional Differentiation

A concept in sociology and systems theory that describes the process by which social systems evolve by differentiating specific subsystems to handle specific functions or tasks.