Computation of GDP by the Expenditures Method Would Include the Purchase

question 97

Multiple Choice

Computation of GDP by the expenditures method would include the purchase of

• A) fertilizer by a farmer.
• B) cement by a construction company.
• C) land by the U.S. Department of Interior.
• D) government bonds by a commercial bank.

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Definitions:

Fiscal Policy

Government policies related to taxation and spending that are used to influence a country's economic conditions.

Private Spending

Expenditures made by individuals, households, and businesses in the private sector, excluding government spending.

Monetary Policy

Economic strategies and decisions made by a central bank or government agency regarding the supply of money and levels of interest rates in an economy.

Fiscal Policy

Governmental policies concerning taxing and spending that are intended to influence economic conditions, including aggregate demand, inflation, and unemployment.