Why are government transfer payments not included in the GDP?
a. It is spending that is too small to count in the GDP.
b. It is spending that disperses income among the citizens.
c. It is spending used to buy goods and services.
d. It is spending used to broker international agreements.
b. It is spending that disperses income among the citizens.
You might also like to view...
In the IS-LM diagram, we are in "general equilibrium"
A) at all points. B) at all points on the LM curve. C) at all points on the IS curve. D) only at the intersection of the IS and LM curves.
Vault cash is part of a commercial bank's
A) demand deposits. B) capital. C) reserves. D) liabilities.
If the capital stock increases faster than employment, then we would expect
a. both output and labor productivity to rise b. output to rise but labor productivity to fall c. both output and labor productivity to fall d. output to fall but labor productivity to rise e. output to rise but labor productivity to remain unchanged
Consider a firm that needs one day to hire more labor, one week to increase its purchases of raw materials, and three months to change the amount of its capital. This firm's long run is
a. three months b. one week c. one day d. three months plus eight days e. three months plus one week