Suppose that in response to the 2008-09 recession, the New Zealand Government raises expenditure by purchasing extra goods and services. These purchases of goods and services are __________.

Select one:

a.

not included in GDP since they are not productive

b.

included in GDP only to the extent that the national government and not local councils paid for them

c.

included in GDP since government expenditures are included in GDP

d.

not included in GDP since the government will have to raise taxes to pay for them