For the purposes of GDP accounting, government purchases

A) include transfer payments.
B) are considered part of investment.
C) include wages and benefits paid to government workers.
D) are considered part of consumption.

C

Economics

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A risk averse individual

a. values a lottery at more than its expected value b. values a lottery at exactly its expected value c. values a lottery at less than its expected value d. tends to play lots of lotteries

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If the government runs a deficit, which of the following will be true?

a. T > G - TR b. T < G - TR c. T > G + TR d. T < G + TR

Economics