Are all categories of government expenditures included in gross domestic product? What government activities are not included in GDP?
What will be an ideal response?
No, all categories of government spending do not represent a demand for currently produced goods and services. For instance, government spending on transfer payment programs like social security and Medicare are not included.
You might also like to view...
The above figure shows the market for 2 bedroom town homes in San Diego. If a rent ceiling is set at $1,000 per month, what is true?
A) The quantity of town homes demanded decreases to 100,000. B) Black market rents might be as high as $1,300 per month. C) The quantity of town homes supplied increases to 250,000. D) More town homes are rented after the rent ceiling that before. E) The quantity demanded of town homes is less than the quantity supplied.
When the good on the horizontal axis is a composite good, the slope of the budget constraint is minus the price of the good on the vertical axis.
Answer the following statement true (T) or false (F)
How can economies of scale lead to monopoly?
Explain why the arrangement in the use of resources in a market system is not random given the decentralized nature of the system
Please provide the best answer for the statement.