Government spending adds directly to GDP through _____ and indirectly through _____.Group of answer choicesgovernment purchases; military spendingtransfer payments; government purchasesgovernment purchases; transfer paymentshigher interest rates; crowding out

Transfer payments are excluded from government purchases in GDP accounting because ______.Multiple choice question.nothing is being produced in return for the paymentthey are difficult to measurethey are a reward to individuals who have been productive their entire livesthey are already included as part of investment

Using the expenditure approach, government expenditures includeQuestion 3AnswerSelect one:a.only state and local government expenditures.b.defense and nondefense federal, state, and local government expenditures.c.residential investment and state and local government expenditures.d.federal government expenditures and transfer payments.e.only nondefense federal government expenditures.

The largest expenditure in GDP accounting has always been __________.Group of answer choicesConsumptionInvestmentGovernment purchasesNet exports

Government expenditure is more effective in economies when _______

This is a component of GDP that is determined by this entity’s spending on public works, national defense, public education and other similar expenditures.Select one:a. Investmentsb. Net Exportsc. Governmentd. Consumption