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If the Canadian Government Pays an Economist at the Federal

Question 92

Multiple Choice

If the Canadian government pays an economist at the federal Ministry of Finance $50 000 in salary in 2010 and $30 000 in retirement benefits in 2011, how are the payments treated?


A) Each payment will be included in GDP as government purchases for the respective years.
B) The 2010 payment is included in 2010 GDP as government purchases, but the 2011 payment is not included in 2011 GDP.
C) The 2010 payment is included in 2010 GDP as government purchases, and the 2011 payment is included in 2011 GDP as government transfer payments.
D) The 2010 payment is included in 2010 GDP as government purchases, and the 2011 payment is allocated to previous years' GDP according to the amount of work performed each year.

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