Transfer payments are not part of government expenditure on goods and services because transfer payments
A) are not predictable given the nature of their appropriation and allocation.
B) do not represent the purchase of a final good or service.
C) are not always spent on goods produced in the U.S.
D) The premise of the question is incorrect because transfer payments are part of government purchases of goods and services.
B
Economics
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Figure 10.7 A Reduction in the Proportional Tax Rate
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Last year in a small economy, consumption spending was $12,000, investment spending was $3,500, government spending was $4, 000, exports were $1,150, and imports were $1,350. What was GDP for this economy last year?
What will be an ideal response?
Economics