According to the BEA, in the second quarter of 2012 state and local government spending on goods and services changed by -1.4 percent. Using the expenditure approach, this change leads to
A) a decrease in government expenditure on goods and services.
B) no change in GDP because only federal government expenditures are included in GDP.
C) a decrease in gross private domestic investment.
D) no change in GDP because state and local government expenditure is always canceled out by federal government expenditure.
A
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Indicate whether the statement is true or false
The size of a deadweight loss in a market is reduced by
A) market price being close to marginal cost. B) government legislating a ceiling price. C) government legislating a price floor. D) creative destruction.
A source of business risk is a change in
A) technology. B) consumer preferences. C) input prices. D) All of the above
In the figure above, how many units of corn are produced at point a?
A) 2000 B) 2500 C) 3000 D) We can’t tell without more information