Page 107 - Macroeconomics. book docx_Neat

Q11

Government spending on education and infrastructure mainly aims to:

A. Increase inflation

B. Reduce productivity

C. Eliminate private sector
D. Promote long-term economic growth

Answer: D

Q12

Which macroeconomic problem can be addressed by increasing public investment?

A. Unemployment

B. Inflation
C. Budget surplus

D. Trade deficit

Answer: A

True / False Questions

Government spending is included in GDP using the expenditure approach.

True

Transfer payments are counted as part of government spending (G).

False

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