The information in many of the tables in this chapter can be found in the Economic Report of the President, which appears annually. Using a recent issue of the report at your library or on the Internet, answer the following questions and provide some numbers to support your answers.
a. Figure shows that government revenue as a percentage of total income has increased over time. Is this increase primarily attributable to changes in federal government revenue or in state and local government revenue?

b. Looking at the combined revenue of the federal government and state and local governments, how has the composition of total revenue changed over time? Are personal income taxes more or less important? Social insurance taxes? Corporate profits taxes?
c. Looking at the combined expenditures of the federal government and state and local governments, how have the relative shares of transfer payments and purchases of goods and services changed overtime?

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Figure Government Revenue as a Percentage of GDP This figure shows revenue of the federal government and of state and local govenments as a percentage of gross domestic product (GDP), which measures total Income in the economy. It shows that the government plays a large role in the U.S. economy and that its role has grown over time. Scurce Hutancal aaretics af the Untad Bureau of Econemic Anas, and author's caculations Revenue as 35% Percent of GDP 30 Total govermmemt 25 State and local 20 15 10 ederal e02 1912 1922 1929 101950 1960 1701960 1992002029 990 o 1902 1913 1922 1929 1940 1900