Business Environment, 1st Edition by Pearson

| 216 | Part III: The Economics of Development

use of resources, infl uencing the distribution of income, con-

trolling the quantity of money, controlling fl uctuations, ensur-

ing full employment and infl uencing the level of investment.”

7

(vi) To promote and maintain high level of economic activities:

Today, government participation is considered as an essential

ingredient of high and rising levels of economic activities for

both developing and developed countries.

(vii) As sources of income and expenditure: In developed market

economies, budgets of governments exercise a very signifi cant

infl uence over the economy. In a number of these countries,

government revenue as well as expenditure exceed one-third

of the GDP.

(viii)