If a small municipal government buys $5,000 worth of business supplies,spends $55,000 to hire an administrator,and spends $26,000 for a new automobile used by the administrator,this municipal government's contribution to GDP is

Question

Quizplus · Accepted Answer

The calculation of GDP includes all final goods and services produced in a country's borders within a given period. In this case, the municipal government's contribution to GDP includes the purchase of business supplies, the hiring of an administrator, and the purchase of a new automobile, all of which are final goods and services. Therefore, the total contribution to GDP is $5,000 + $55,000 + $26,000 = $86,000, making choice D the correct answer.

If a Small Municipal Government Buys $5,000 Worth of Business