Why do we demand government services?
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Of course, people expect state and local governments to provide services such as police protection, education, highway building and maintenance, welfare programs, and hospital and health care. Taxes are a major source of income to pay for these services and many others that hit close to home.
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Government demand refers to the government's demand for goods and services produced in the economy. In some cases this demand is for G&S produced by private businesses, as when the government purchases a naval aircraft. ... All levels of government demand—federal, state, and local—are included in this demand term.
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