Growth in Spending by All Levels of Government in the United

question 2

Multiple Choice

Growth in spending by all levels of government in the United States over the past half-century:

• A)has kept pace with neither tax revenues nor real GDP.
• B)has kept pace, except for an occasional wartime surge, with both tax revenues and real GDP.
• C)has kept pace, except for an occasional wartime surge, with both tax revenues and nominal GDP.
• D)has surged at a rate that has significantly exceeded the rate of growth of nominal GDP.
• E)has surged at a rate that has significantly exceeded the rate of growth of tax receipts.

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Definitions:

Transfer of Possession

The act of handing over control or ownership of an item or property from one party to another.

Property Rights

The legal rights to own, use, and dispose of assets including real property and intellectual property.

Purchaser

An individual or entity that buys goods or services for personal use, commercial use, or resale.

Industry Canada

A department of the Canadian government formerly responsible for economic development, innovation, and scientific research, now part of Innovation, Science and Economic Development Canada.