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1 Introductory concepts 2  Market mechanism  3 Elasticities  4 Market structures 5  Market failures  6  Macro economic activity/eco growth  7 Inflation 8  Employment & unemployment  9  External Stability  10  Income distribution 11.Factors affecting economy  12  Fiscal/Budgetary policy  13  Monetary Policy   14 Aggregate Supply Policies  15 The Policy Mix

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The Composition of expenditure


The major government expenses are detailed in the chart below  Social security and welfare is by far the largest item of spending, made up of things like job search allowance, pensions and family benefits.  Health expenditure (e.g. spending on public hospitals) is the next largest ‘specific’ component, followed by education spending (e.g. money spent on universities) and defence spending (e.g.  purchases of military equipment).




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