In the Equation, GDP = C + I + G

question 222

Multiple Choice

In the equation, GDP = C + I + G + X - M, G refers to

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

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Definitions:

Adults Employed

The subset of the population that is of working age, is able and willing to work, and is currently employed.

Adults Unemployed

Individuals within the working-age population who are not currently employed but are seeking employment.

Adults Not in the Labor Force

Individuals of working age who are neither employed nor actively seeking employment.

Labor Force

The total number of people employed or seeking employment in a country or region.