The share of GDP available for nongovernment use
A)is, for any interest rate, the sum of the share of investment and consumption expenditures.
B)is the sum of the share of net exports, investment, and consumption expenditures at any given interest rate.
C)is equal to 1 minus the government share of GDP.
D)varies depending on the interest rate.
E)None of these

Question

Quizplus · Accepted Answer

The share of GDP available for nongovernment use is the total GDP minus the government share of GDP, which is given by taxes, purchases, and transfer payments. Therefore, option C, which states that the share of GDP available for nongovernment use is equal to 1 minus the government share of GDP, is correct. The other options are incorrect as they either include only a part of the components or are dependent on the interest rate.

The Share of GDP Available for Nongovernment Use