The Increase in Real GDP Per Capita Over the Past

question 20

Multiple Choice

The increase in real GDP per capita over the past 40 years is closest to

• A)$1,000.
• B)$3 trillion.
• C)$22,000.
• D)$100,000.
• E)$8,000.

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Definitions:

Transfer Payments

Payments made by the government to individuals for which no goods or services are provided in return, such as welfare benefits.

Budget Deficit

The situation where a government's expenditures surpass its revenue over a specific period, leading to borrowing or debt accumulation.

Government Purchases

Expenditures by government entities on goods and services that directly absorb resources and are part of the nation's gross domestic product (GDP).

Discretionary Fiscal Policy

Government policy involving deliberate measures, such as taxation and spending, to influence economic activity.