Bundle: Microeconomics for Today, Loose-leaf Version, 9th + Aplia, 1 term Printed Access Card
Bundle: Microeconomics for Today, Loose-leaf Version, 9th + Aplia, 1 term Printed Access Card
9th Edition
ISBN: 9781305926592
Author: Irvin B. Tucker
Publisher: Cengage Learning
Question
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Chapter 12, Problem 1SQP
To determine

Percentage of government spending in GDP.

Expert Solution & Answer
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Explanation of Solution

The difference between the total government expenditures and total government spending is known as transfer payments. Transfer payment implies that the resources are not used up, instead they are only redistributed. The reallocation of resources results in transfer of the purchasing power from one group of people to another.

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