Which of the following is a government expenditure, but is not a government purchase?
A) The federal government pays out an unemployment insurance claim.
B) The federal government buys a Humvee.
C) The federal government pays the salary of an FBI agent.
D) The Federal government pays to support research on AIDS.
A
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Private disposable income equals GDP ________
A) minus corporate profits and net factor income B) plus transfer payments and net exports C) plus depreciation, transfer payments, and interest payments on government debt D) plus net factor income minus net government income E) none of the above
Assume that in the economy real GDP grows at a constant rate. There has just been a decrease in the rate of growth of the population. This implies that the
A) rate of growth of per capita real GDP will decrease. B) rate of growth of per capita real GDP will increase. C) rate of growth of capital accumulation will decrease. D) rate of growth of capital accumulation will increase.