With respect to the national accounts measurement of economic activity, government purchases are:
A) expenditures on current output.
B) taxes net of subsidies.
C) imports.
D) investment.

Question

Quizplus · Accepted Answer

Government purchases in national accounts refer to expenditures on goods and services that are used to provide public services, and on goods and services provided by the government to households without charge. This includes spending on current output such as public administration, defense, education, and healthcare, but does not include transfer payments like pensions and unemployment benefits, which are not payments for current output.

With Respect to the National Accounts Measurement of Economic Activity