In the Equation, GDP = C + I + G

question 255

Multiple Choice

In the equation, GDP = C + I + G + NX, G refers to

• A) local, state, and federal government expenditure on goods and services, but does not include transfer payments.
• B) the taxes and expenditures of all government units.
• C) local, state, and federal government spending for all purposes.
• D) federal government expenditures plus all transfer payments.

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Definitions:

Incentive Plans

Compensation strategies designed to motivate employees by linking a portion of their pay to individual or organizational performance.

Labour Costs

The total expenditure by businesses on employee compensation, including wages, salaries, and benefits.

Piecework Pay Plans

Compensation schemes where workers are paid based on the quantity of items they produce or complete, rewarding productivity and output.

Labour Costs

The total expenditure by employers for the compensation of employees, including wages, benefits, and other related expenses.