The U.S. government pays an economist at the U.S. Department of Commerce $100,000 in salary in 2013 . The economist then retires. In 2014, the government pays him $60,000 in Social Security benefits. Which of the following is correct?
a. The 2013 payment is included in 2013 GDP as government purchases, and the 2014 payment is included in 2014 GDP as government purchases.
b. The 2013 payment is included in 2013 GDP as government purchases, but the 2014 payment is not included in 2014 GDP.
c. The 2013 payment is included in 2013 GDP as government purchases, and the 2014 payment is included in 2014 GDP as government transfer payments.
d. The 2013 payment is included in 2013 GDP as government purchases, and the 2014 payment is allocated to previous years' GDP according to the amount of work performed by the economist each year.
b
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A) used goods or financial assets. B) financial assets or investment. C) used goods or investment. D) investment, stocks, or bonds. E) government expenditures on goods and services.
You can determine the lag lengths in a VAR
A) by using confidence intervals. B) by using critical values from the standard normal table. C) by using either F-tests or information criteria. D) with the help from economic theory and institutional knowledge.
If the government thinks the price that a consumer has to pay for a good is too low, then which of the following would solve this problem?
a. a price ceiling or an excise tax b. a price floor or an excise tax c. a price ceiling or a subsidy d. a price floor or a subsidy e. none of the above will lower the price a consumer has to pay for a good
According to Friedman, a person's marginal propensity to consume is determined by the person's
a. transitory income b. permanent income c. absolute income d. marginal propensity to save e. life cycle income