Government purchases include
I.purchases by the federal government.
II.purchases by the state and local government agencies.
III.the total value of output produced by government agencies.
IV.transfer payments.

Question

Quizplus · Accepted Answer

Government purchases refer to the goods and services purchased by government agencies at all levels (federal, state, and local) for their own use, and the total value of output produced by government agencies is not included. Transfer payments are not considered as purchases, as they do not involve the acquisition of goods or services. Therefore, options I, II, and III are included in the definition of government purchases.

Government Purchases Include I.purchases by the Federal Government