Economics · Public Finance

Wagner's Law of increasing public expenditure primarily states that:

Verified Solution4 OptionsUpdated: October 2026👁️1 View

1Public expenditure as a proportion of GDP tends to increase as per capita income increases✓
2Public expenditure follows business cycles exactly
3Government spending should equal tax revenue
4Public expenditure grows faster than population growth

Correct answer

Public expenditure as a proportion of GDP tends to increase as per capita income increases

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