According to legend, some government employees do very little work. If this legend is true enough to

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According to legend, some government employees do very little work. If this legend is true enough to be important, then we may be measuring GDP incorrectly. Officially, we say that these are “employed workers,” but to a great extent these “employees” are really unemployed in any useful task; they are receiving transfer payments and watching YouTube for 40 hours per week. If, instead, government statistics counted these YouTube-watching government employees as simply retired or unemployed, which of the following would rise, which would fall, and which would remain unchanged? (Note:

You might use rise, fall, and unchanged more than once each or you might not.)

Consumption Government Gross Domestic Purchases Product. lop589

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Modern Principles Of Economics

ISBN: 9781429239974

2nd Edition

Authors: Tyler Cowen, Alex Tabarrok

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