Question

For the United States, from the 1980s to today, there has been an increase in both absolute size and relative size (relative to GDP) for the federal government in

Answer 1

The U.S. federal government has seen an increase in both absolute size and relative size to GDP, with fluctuations in government spending and tax revenue based on economic conditions from the 1980s to today.

Step-by-step explanation:

From the 1980s to today, the federal government's absolute size and its size relative to GDP have both increased in the United States. While the government spending trend showed a steady decline as a share of GDP through the 1990s, with defense spending falling from 5.2% to 3.0% of GDP and federal tax revenue increasing, the longer-term trend since 1960 has federal spending fluctuating between 18% and 22% of GDP.

Periods of robust economic growth affected tax revenues positively, with personal income taxes, payroll taxes, and corporate income taxes rising. Meanwhile, costs associated with transfer payments like unemployment benefits decreased due to higher employment rates during these periods.