Government purchases, as a component of GDP include all except:
A) goods and services bought by all levels of government.
B) both consumption- and investment-type goods bought by the government.
C) include services the government pays for.
D) goods purchased by government from foreign countries.

Question

Quizplus · Accepted Answer

Government purchases include goods and services bought by all levels of government, both consumption- and investment-type goods bought by the government, and services the government pays for. However, goods purchased by government from foreign countries are counted in net exports (exports - imports) instead of government purchases component of GDP.

Government Purchases, as a Component of GDP Include All Except