Government spending in the national income accounts refers only to expenditures at the federal level.
Answer the following statement true (T) or false (F)
False
Government expenditures included in GDP involves local, state, and federal spending as well.
You might also like to view...
In a market with an external cost, government action
A) cannot decrease the amount of the deadweight loss from the external cost. B) can sometimes help to achieve an efficient outcome. C) cannot alter firms' cost curves. D) Both answers A and C are correct. E) Both answers B and C are correct.
If Ap is total autonomous planned spending, c is the marginal propensity to consume, s is the marginal propensity to save, and Y is the equilibrium income level, then induced saving is
A) Ap/Y. B) Y = Ap/s. C) sY. D) cAp.
The cost disease of the service sector is evidenced by
a. a failure of the market mechanism. b. increased quality of public and private services. c. dramatic increases in municipal budget burdens for education, health care, and police and fire protection. d. the increased productivity in the services area.
According to the Taylor rule, the Federal Reserve sets interest rates in response to:
A. the inflation rate and the current output gap. B. the current output gap and the target money supply growth. C. the S&P 500 index and the inflation rate. D. the inflation rate and the unemployment rate.