Economics

IntroductionIn the year 2001 current government gain and disbursements were 2100B and 2000B respectively . By 2006 the figures of government profit and uses were 2500B and 2700B respectively , therefore it can be noted that there were rises in both accounts although government expenditure increased more than government expenditure Within the diaphragm stated (2001-2006 ) it can be observed that the takes of government expenditure has been on a steady rise , rising from a direct of around 2000B in the beginning of 2001 to a level of 2700B by close of the year 2006 . However government receipts have been intermittent between 2001 and mid 2003 from where they rose steadily up to the first quarter of 2005 . They fell again in the second quarter before rising again through with(predicate) 2006The rise in expenditure could be attributed to increased phalanx expenditure especially in Iraq and Afghanistan . During this period the bush tribunal had to seek the congress for increased funds to wage the ongoing war and insurgencies both in Afghanistan and Iraq . The irregular rise and line in government current receipts could be attributed to president Bush s 2001 valuate cuts . In 2001 the bush administration was fitting to pass through a 1 .35 trillion tax cut (one of the largest in U .S history ) this was meant to return leftover government funds back to tax payers in to facilitate economic growth .

The falls in government receipts could also be attributed to increased unemployment that peaked to a level of 6 .2 in 2003During the same period (2001-2006 ) it can be observed that the square gross domestic product (3 ten-fold ) also rose steadily from around 9800B to a soft 11500B . Looking at a sample of the three plan to exciteher (see belowFrom the above figure we can see that irrespective of the intermittent nature of the Current government receipts the accumulative trends of all three indicate a linear relationship between Current government expenditure , Receipts and reliable GDP . This is due to the fact that both the current expenditure and current Receipts are constituent factors of the current real Gross Domestic ProductReferenceHYPERLINK http / research .stlouisfed .org /fred2 http /research .stlouisfed .org /fred2PAGEPAGE 3p Current Government Receipts , Expenditures Real GDP...If you want to get a full essay, order it on our website: Ordercustompaper.com

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