When the Share of Government Spending in GDP Increased in the United

question 131

Multiple Choice

When the share of government spending in GDP increased in the United States during World War II,

• A) consumption's share of GDP increased.
• B) investment's share of GDP fell.
• C) government spending was crowded out.
• D) investment's share of GDP increased.

---

Definitions:

Channel Intermediaries

Businesses or individuals that act as intermediaries within the distribution channel, facilitating the movement of goods from manufacturers to consumers.

Logistical Function

Refers to the planning, implementation, and controlling of efficient and effective flow and storage of goods, services, and related information.

Transactional Functions

The activities involved in the buying and selling process, including pricing, promotion, and distribution.

Logistical Functions

The process of acquiring, creating, and delivering goods and services in the appropriate amounts to the consumer or ultimate location.