When measuring GDP,
A) only the federal government's expenditure on goods and services is included.
B) the government sector is counted, and the value of the government sector in GDP is equal to its tax revenue.
C) the expenditure on goods and services by all levels of government are included.
D) the government sector is not included because it is the public sector not the private sector.
E) the government sector is not counted because it does not produce goods and services.

Question

Quizplus · Accepted Answer

The expenditure on goods and services by all levels of government (federal, state, and local) is included in the calculation of GDP. This includes spending on things like infrastructure, education, and defense, which are considered part of the final goods and services produced within a country during a given period.

When Measuring GDP