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Which of the following is relevant for wagner's law of increasing state activities? a) public expenditure does not increase in a smooth and continuous manner. b
Which of the following is relevant for Wagner's Law of Increasing State Activities? a) Public expenditure does not increase in a smooth and continuous manner. b)Public expenditure increases in step like fashion. c)There are inherent tendencies for the activities of the Government to increase both intensively and extensively. d)Economy grows faster than the governmental sector.
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The law of increasing state activities states that with economic growth and development a nation will experience an increase in the activities of public sector. The ratio of increase would raise the output per capita i.e. ratio of public consumption expenditure to Gross Nation Product will rise and hence GNP rises. option (c)