Calculate the size of public sector (SPS) using government expenditure approach on thb e ollowi n g

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Calculate the size of public sector (SPS) using government expenditure approach on thb e ollowi n g

a) Explain the two characteristics of public goods and state what causes each one of them. (6marks)
b) State any three methods of measuring the size of the public sector. (4marks)
c) You are provided with the following national income statists
C=10+2Yd
Yd=Y-T
T=2+0.2Y
Investments= 20
Net exports= -10
Required:
i. Calculate the size of public sector (SPS) using government expenditure approach. (5marks)
ii. Solve the public sector borrowing requirements. (5marks)
d) Using relevant examples, discuss the four public policy objectives. (10 marks)

 

 

 

 

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