As we can see in the graph below, the revenues dropped since 2008 Q1, while the expenditure component grew to highest levels, reaching a peak in the Q4 2008. This strongly supports the idea that government have the possibility to take countercyclical actions and that they impact on the GDP is straightforward. This is especially true in Euro Area, where the government share of the GDP is very significant (as in countries as France and Northern Europe).
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