Suppose a government collects $12 billion in various tax revenues and pays $2.5 billion in debt interest, $9 billion in social security benefits and $0.5 billion in government employee wages. What is the direct contribution to GDP coming from this government's fiscal actions? a. $3.0 billion. b. $0.5 billion. C. $11.5 billion. d. $2.5 billion. e. $12.0 billion.
Suppose a government collects $12 billion in various tax revenues and pays $2.5 billion in debt interest, $9 billion in social security benefits and $0.5 billion in government employee wages. What is the direct contribution to GDP coming from this government's fiscal actions? a. $3.0 billion. b. $0.5 billion. C. $11.5 billion. d. $2.5 billion. e. $12.0 billion.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
![Suppose a government collects $12 billion in various tax revenues and
pays $2.5 billion in debt interest, $9 billion in social security benefits and
$0.5 billion in government employee wages. What is the direct contribution
to GDP coming from this government's fiscal actions?
a. $3.0 billion.
b. $0.5 billion.
C. $11.5 billion.
d. $2.5 billion.
e. $12.0 billion.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F1812055d-4d30-4b17-bede-6c35baa8eeaa%2Fc2459d29-38a1-469d-b078-fc1e2881a0c4%2Fe6hli_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Suppose a government collects $12 billion in various tax revenues and
pays $2.5 billion in debt interest, $9 billion in social security benefits and
$0.5 billion in government employee wages. What is the direct contribution
to GDP coming from this government's fiscal actions?
a. $3.0 billion.
b. $0.5 billion.
C. $11.5 billion.
d. $2.5 billion.
e. $12.0 billion.
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Recommended textbooks for you
![ENGR.ECONOMIC ANALYSIS](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9780190931919/9780190931919_smallCoverImage.gif)
![Principles of Economics (12th Edition)](https://www.bartleby.com/isbn_cover_images/9780134078779/9780134078779_smallCoverImage.gif)
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
![Engineering Economy (17th Edition)](https://www.bartleby.com/isbn_cover_images/9780134870069/9780134870069_smallCoverImage.gif)
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
![ENGR.ECONOMIC ANALYSIS](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9780190931919/9780190931919_smallCoverImage.gif)
![Principles of Economics (12th Edition)](https://www.bartleby.com/isbn_cover_images/9780134078779/9780134078779_smallCoverImage.gif)
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
![Engineering Economy (17th Edition)](https://www.bartleby.com/isbn_cover_images/9780134870069/9780134870069_smallCoverImage.gif)
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
![Principles of Economics (MindTap Course List)](https://www.bartleby.com/isbn_cover_images/9781305585126/9781305585126_smallCoverImage.gif)
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
![Managerial Economics: A Problem Solving Approach](https://www.bartleby.com/isbn_cover_images/9781337106665/9781337106665_smallCoverImage.gif)
Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning
![Managerial Economics & Business Strategy (Mcgraw-…](https://www.bartleby.com/isbn_cover_images/9781259290619/9781259290619_smallCoverImage.gif)
Managerial Economics & Business Strategy (Mcgraw-…
Economics
ISBN:
9781259290619
Author:
Michael Baye, Jeff Prince
Publisher:
McGraw-Hill Education