ECONOMICS
GDP
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Yes-Government spending
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Yes-Consumer Spending
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No-Intermediate Goods
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No-Purely financial Transaction
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Detailed explanation-1: -The demand for money is the LM curve, when the government spends more money, it increases the AE curve thus increasing GDP. Therefore the investment/saving curve will shift due to the increases GDP which leads to increased Savings which leads to a lower interest rate.
Detailed explanation-2: -What are the three types of government spending? The three main types of government expenditure include public services, transfer payments, and debt interest.
Detailed explanation-3: -What is Gross Domestic Product? A comprehensive measure of U.S. economic activity. GDP measures the value of the final goods and services produced in the United States (without double counting the intermediate goods and services used up to produce them).