How would each of the following transactions affect the GDP of the United States? LO1 a. The

Question:

How would each of the following transactions affect the GDP of the United States? LO1

a. The U.S. government pays $1 billion in salaries for government workers.

b. The U.S. government pays $1 billion to Social Security recipients.

c. The U.S. government pays a U.S. firm $1 billion for newly produced airplane parts.

d. The U.S. government pays $1 billion in interest to holders of U.S. government bonds.

e. The U.S. government pays $1 billion to Saudi Arabia for crude oil to add to U.S. government-owned oil reserves.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Principles Of Macroeconomics

ISBN: 9780077331542

4th Edition

Authors: Robert Frank, Ben Bernanke

Question Posted: