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

a. Is local, state, and federal governments 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 2014 the federal government spent $57.3 billion on Social Security payments to retired and disabled people. Is this federal government spending considered production as measured by GDP? Briefly explain.