The government component (G) of total output includes goods and services purchased by
A)the federal government plus transfer payments.
B)all government institutions plus transfer payments.
C)all government institutions.
D)all government institutions plus tax revenues.

Question

Quizplus · Accepted Answer

The government component of total output only includes goods and services produced by government institutions. Transfer payments and tax revenues are not included in the calculation of total output.

The Government Component (G) of Total Output Includes Goods and Services