Measured as a Share of GDP, the Total Government Expenditures

question 55

Multiple Choice

Measured as a share of GDP, the total government expenditures of the United States are

• A) larger than any country in the world.
• B) smaller than any country in the world.
• C) smaller than the comparable figure for Japan and most Western European countries.
• D) larger than the comparable figure for Japan and most Western European countries.

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Definitions:

Real GDP

Gross Domestic Product adjusted for inflation, reflecting the value of all goods and services produced by an economy in a given year at constant prices.

GDP

Gross Domestic Product, the total value of all goods and services produced within a country's borders in a specific time period, serving as a broad indicator of economic health.

Real GDP

Gross Domestic Product corrected for inflation levels, offering a clearer view of the economy's scale and its growth trajectory over time.

Billion

A numerical value representing one thousand million (1,000,000,000) in the short scale, and commonly used in financial contexts.