Consider the Following Three Items of Spending by the Government

Multiple Choice

Consider the following three items of spending by the government: (1) the federal government pays a $500 unemployment benefit to an unemployed person;(2) the federal government makes a $2,000 salary payment to a Navy lieutenant;(3) the city of Bozeman,Montana makes a $10,000 payment to ABC Lighting Company for street lights in Bozeman.Which of these payments contributes directly to government purchases in the national income accounts?

A) only item (1)
B) only item (2)
C) only items (1) and (2)
D) only items (2) and (3)