Government purchases of goods and services:
A) are income-determined spending.
B) tend to be less stable than investment expenditures.
C) are the largest component of total, or aggregate, spending.
D) do not include government payments for Social Security and unemployment compensation.

Question

Quizplus · Accepted Answer

Government purchases of goods and services refer to actual spending on goods and services by the government, not transfers like Social Security and unemployment compensation, which are considered transfer payments and not direct purchases of goods or services.

Government Purchases of Goods and Services