During an interview with a reporter, former Microsoft CEO Steve Ballmer discussed the data compiled on the

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During an interview with a reporter, former Microsoft CEO Steve Ballmer discussed the data compiled on the usafacts.org website. Ballmer asked if the reporter knew how many people the government employed and then provided the answer: “Almost 24 million. Would you have guessed that?”

a. Are local, state, and federal government spending on salaries and benefits for these employees considered production, as measured by GDP? Briefly explain.

b. According to data on the usafacts.org site, in 2018 the federal government’s Social Security Administration, which makes payments to retired and disabled people, paid the average recipient $1,347.46 per month. Is this federal government spending considered production, as measured by GDP? Briefly explain.

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Economics

ISBN: 9781292430645

8th Global Edition

Authors: R. Glenn Hubbard, Anthony P. O'Brien

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