When Calculating GDP from the Expenditure Side,which of the Following

question 16

Multiple Choice

When calculating GDP from the expenditure side,which of the following is true of the government purchases component,Ga?

• A)it includes government subsidies to private firms
• B)it is based on the governmentʹs planned spending
• C)it includes employment insurance and employment benefits
• D)it excludes transfer payments
• E)it only includes federal government expenditures

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Definitions:

Least-squares Regression

A statistical method used to determine the best-fit line that minimizes the sum of the squared differences between observed values and the values predicted by the line.

Cost Formula

An equation used to determine the total cost of production, which includes fixed and variable costs.

Activity Data

Information related to the actions or operations of a business, which may include sales, production, or other operational metrics.

High-low Method

A method employed in managerial accounting that calculates variable and fixed costs by analyzing the highest and lowest activity levels.