Interest on the public debt is included as a part of government purchases in determining GDP by
the expenditures method.

Name: Interest on the public debt is included as a part of government purchases in determining GDP by the expenditures method.
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Question

Quizplus · Accepted Answer

Interest on the public debt is not considered a government purchase as it does not involve the production of goods or services. Therefore, it is not included in the calculation of GDP using the expenditures method.

Interest on the Public Debt Is Included as a Part