Government purchases of goods and services are
A) nonexhaustive because they do not directly absorb resources and account for production.
B) exhaustive because they directly absorb or employ resources and account for production.
C) both exhaustive and nonexhaustive because in some cases they do directly absorb resources or account for production and in other cases they do not.
D) neither exhaustive nor nonexhaustive because of the tax revenues that finance these purchases.
Correct Answer:
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