Which of the Following Types of Government Spending Is Included

question 98

Multiple Choice

Which of the following types of government spending is included in the calculation of GDP?

• A)Federal spending only.
• B)Federal,state,and local government spending for any purpose.
• C)Federal,state,and local government spending on goods and services only.
• D)Federal,state,and local spending on transfer payments only.

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Definitions:

Affect Inventories

Influences on the quantity, value, or type of products a business holds for sale, resulting from factors like demand fluctuations and supply chain issues.

Expense Recognition Principle

An accounting guideline that expenses should be recognized in the period in which they are incurred, regardless of when the payment is made.

Cost Of Goods Sold

Direct expenses involved in producing goods for sale by a company, covering both materials and workforce costs.

Ending Merchandise Inventory

The final value of goods available for sale at the end of an accounting period, before any new inventory has been added.