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Suppose That the Government Collects $3 Million in Taxes, Pays

Question 10

Multiple Choice

Suppose that the government collects $3 million in taxes, pays $2 million in Employment Insurance benefits, pays $0.5 million in interest on the national debt, and pays workers $1 million to sit at their desks and work as little as possible. The government's contribution to GDP is


A) $0.
B) $1 million.
C) $1.5 million.
D) $3 million.
E) $3.5 million.

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