While GDP Includes Tangible Goods Such as Books and Bug

question 150

True/False

While GDP includes tangible goods such as books and bug spray, it excludes intangible services such as the services provided by teachers and exterminators.

---

Definitions:

Open-market Purchase

The buying of securities by a central bank from the market to inject liquidity and encourage economic growth.

Aggregate Demand

The complete need for goods and services across an economy at an established price level within a specific period.

Government Spending

The total amount of money spent by the government on various services, infrastructure projects, and welfare programs.

Marginal Propensity

A measure of how much an individual's or household's consumption changes when their income changes by one unit.