Government Revenue and Expenditures

Respond to the following four questions in a minimum of 175 words each question

1. Identify the main sources of revenue for and the largest expenditures made by federal, (175 words)

2. Identify the main sources of revenue for and the largest expenditures made by state, (175 words)

3. Identify the main sources of revenue for and the largest expenditures made by local governments. (175 words)

Similar to the market supply and demand model, which addresses price and quantity, when the price level in the aggregate supply and demand model increases, there is a movement along the aggregate demand curve. The quantity of real GDP demanded decreases in response to an increase in the price level. However, the aggregate demand curve does not shift.

4. Give examples of factors that decrease aggregate demand. (175 words)

5. Which way does the aggregate demand curve shift? (175 words)