Which of the Following Is True of Government Purchases

question 21

Multiple Choice

Which of the following is true of government purchases?

• A)Government purchases are independent of the price level.
• B)Government purchases are independent of the level of real GDP.
• C)Government purchases are independent of consumption.
• D)Government purchases are independent of investment.
• E)Government purchases are independent of the amount saved by households.

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Definitions:

Capital Use

Refers to how effectively a company or economy utilizes its capital resources, including equipment and machinery, for production.

Farmworker

An individual engaged in labor within the agricultural sector, typically involving crop cultivation and livestock rearing.

Labor Force

The sum of individuals either holding a job or looking for work within a specific economic sector.

Agriculture

The practice of cultivating land and breeding animals to provide food, fiber, medicinal plants, and other products.