Figure 15.1 "Government Expenditures and Revenues as a Percentage of GDP" shows total government expenditures and revenues as a percentage of GDP from 1929 to 2007 All levels of government are included Government expenditures include all spending by government agencies Government revenues include all funds received by government agencies The primary component of government revenues is taxes; revenue also includes miscellaneous receipts from fees, fines, and other sources We will look at types of government revenues and expenditures later in this chapter Figure 15.1 Government Expenditures and Revenues as a Percentage of GDP Government expenditures and revenues have risen dramatically as a percentage of GDP, the most widely used measure of economic activity Source: U.S Department of Commerce, Bureau of Economic Analysis, NIPA Tables 1.15 and 3.1 Figure 15.1 "Government Expenditures and Revenues as a Percentage of GDP" also shows government purchases as a percentage of GDP Government purchases happen when a government agency purchases or produces a good or a service We measure government purchases to suggest the opportunity cost of government Whether a Attributed to Libby Rittenberg and Timothy Tregarthen Saylor URL: http://www.saylor.org/books/ Saylor.org 783