Asked by Allison Mcintee on Jun 25, 2024
Verified
According to data compiled by the Bureau of Economic Analysis, in 2018, total government spending (comprising purchases and transfers) in the U.S. was about
A) 10 percent of the economy's total output.
B) 32 percent of the economy's total output.
C) 58 percent of the economy's total output.
D) 27 percent of the economy's total output.
Total Government Spending
The sum of all expenditures made by the government in a specified period, including spending on goods and services, public projects, and social assistance programs.
Economy's Total Output
The total value of all goods and services produced within an economy over a specific period, often measured as Gross Domestic Product (GDP).
- Understand the principle behind a country's tax load and the methods used for its computation.
Verified Answer
DD
Darby DomineyJun 26, 2024
Final Answer :
B
Explanation :
In 2018, total government spending in the U.S., which includes both purchases of goods and services and transfer payments, amounted to approximately 32 percent of the country's total economic output. This figure reflects the significant role government spending plays in the overall economy.
Learning Objectives
- Understand the principle behind a country's tax load and the methods used for its computation.