Asked by Francies Guzman on May 11, 2024
Verified
Government purchases are about _____ of GDP.
A) one-half
B) two-fifths
C) one-third
D) one-fifth
E) one-tenth
Government Purchases
Expenditures by government entities for goods and services that directly satisfy public consumption or are invested in public infrastructure.
GDP
Gross Domestic Product (GDP) measures the total value of all goods and services produced within a country's borders in a specific time period, serving as a broad indicator of its economic performance.
- Understand the constituents of GDP (consumption, investment, government expenditures, and net exports) and their effects on the economic landscape.
Verified Answer
AM
Arshya MittalMay 18, 2024
Final Answer :
D
Explanation :
Government purchases typically account for about one-fifth of GDP in many economies, although this can vary significantly between countries and over time.
Learning Objectives
- Understand the constituents of GDP (consumption, investment, government expenditures, and net exports) and their effects on the economic landscape.