EBK ECONOMICS
EBK ECONOMICS
13th Edition
ISBN: 8220106798607
Author: Arnold
Publisher: CENGAGE L
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Chapter 11, Problem 1QP
To determine

Identify the difference between the government expenditure and government purchase.

Expert Solution & Answer
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Explanation of Solution

The government expenditure is the broader definition of government spending, and the government purchase is the narrow definition of the government spending. In the accounting of government expenditure, it indicates the sum total of government purchases plus the transfer payments of the government, whereas the government purchases do not include the transfer payments in its calculation. 

Economics Concept Introduction

Government spending: Government spending is the amount of money used by the government for funding its programs and operations.

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