Government purchases include spending by all levels of government on
A) consumer durables,nondurables,and services.
B) stocks,bonds,and other financial instruments.
C) capital goods,residential housing,and changes in inventories.
D) final goods and services.
E) goods and services sold abroad minus goods and services produced abroad.

Question

Quizplus · Accepted Answer

Government purchases are the total amount of goods and services purchased by government entities at the federal, state, and local levels. The purchases are of final goods and services, which means they are products that are consumed or used for investment purposes and not for further production. Examples include defense goods and services, education, healthcare, and infrastructure. Therefore, option D is the most suitable choice.

Government Purchases Include Spending by All Levels of Government on