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U.S. Government Spending on Goods and Services

Question 42

Multiple Choice

U.S. government spending on goods and services:


A) can act as a temporary shock that causes short-run fluctuations.
B) can act as a policy instrument designed to mitigate short-run fluctuations.
C) represents about 20 percent of the U.S. GDP.
D) does not include transfer payments.
E) All of these answers are correct.

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