Suppose federal government purchases of goods and services is $475 billion, state government purchases of goods and services is $700 billion, and local government purchases of goods and services is $200 billion. What figure would GDP use for government purchases?

Question

Quizplus · Accepted Answer

To calculate government purchases in GDP, we need to add up the purchases made by federal, state, and local governments. Therefore, the figure used in GDP for government purchases would be $475 billion + $700 billion + $200 billion = $1,375 billion.

Suppose Federal Government Purchases of Goods and Services Is $475