Government Spending

Critical Thinking Questions

Why is government spending typically measured as a percentage of GDP rather than in nominal dollars?

Why are expenditures such as crime prevention and education typically done at the state and local level rather than at the federal level?

Why is spending by the U.S. government on scientific research at NASA fiscal policy while spending by the University of Illinois is not fiscal policy? Why is a cut in the payroll tax fiscal policy whereas a cut in a state income tax is not fiscal policy?