Which of the following is included in the government expenditure component of the expenditure approach to GDP?

Question

Quizplus · Accepted Answer

The government expenditure component of GDP includes spending by all levels of government (federal, state, and local) on goods and services such as infrastructure, defense, education, and healthcare. State government expenditure on local schools falls under this category. Changes in inventories are counted in the investment component of GDP, taxes are not counted as part of GDP, and transfer payments are not counted as government expenditure because they do not represent the purchase of goods or services.

Which of the Following Is Included in the Government Expenditure