Question

____ are spending by the government on​ goods, services, and factors of production.

Answer 1

Answer:

The correct words for the blank spaces are: Government purchases; Government Expenditures.

Explanation:

Government purchases refer to the expenses the central government incurs in federal, state, and local agencies. These purchases represent part of the Gross Domestic Product (GDP) of the country considering transfer payments are not including in these expenditures.

When the transfer payments are added to the government purchases the result represents the Government Expenditures. It is one of the factors of the GDP along with private investments, individuals' consumption, and net exports (exports minus imports).