Which of the following statements characterizes government purchases in the United States between 2001 and 2011?
A) Government purchases as a share of GDP have declined.
B) Government purchases as a share of GDP have increased.
C) Government purchases as a share of GDP have remained constant.
D) Government purchases have fluctuated widely over this period.
Ans: B) Government purchases as a share of GDP have increased.
You might also like to view...
If the number of wine producers decreases
A) the supply of wine increases. B) the supply of wine decreases. C) the demand for wine decreases. D) the demand for wine increases.
The average price of gasoline in June of 2008 in the United States was $3.79 . This was up by 82 cents from the previous year. Forecasters are expecting a drop in gasoline consumption of about 1% for the first time in 16 years
Even though this is a historic moment what do the figures still demonstrate about the elasticity of demand for gasoline? If the price increases go unabated what is likely to happen to the long-run price elasticity for gasoline and why?
Transfer payments are included in which category under the expenditure approach to GDP accounting?
a. consumption b. government purchases c. net exports d. Transfer payments are not directly included in GDP calculations.
The income elasticity of demand
A. must lie between -1 and +1. B. is positive only. C. can be positive, negative, or zero. D. is negative only.