What is the difference between federal purchases and federal expenditures? A. The difference between federal purchases and federal expenditures is so small that it is generally ignored. B. Federal purchases and federal expenditures both require that the government receives a good or service in return. C. Federal purchases require that the government receives a good or service in return, whereas federal expenditures exclude transfer payments. D. Federal purchases require that the government receives a good or service in return, whereas federal expenditures include transfer payments. Are federal purchases higher today than they were in 1960? A. As a percentage of GDP, federal purchases have remained unchanged since 1960. B. As a percentage of GDP, federal purchases have decreased since 1960. C. As a percentage of GDP, federal purchases have increased since 1960. Are federal expenditures higher today than they were in 1960? A. As a percentage of GDP, federal expenditures have decreased since 1960. B. As a percentage of GDP, federal expenditures have remained unchanged since 1960. C. As a percentage of GDP, federal expenditures have increased since 1960.

Federal purchases are purchases of goods and services and it is required that the government receives a good or services in return, whereas federal expenditures is the sum of government purchases including transfer payments.

In relation to GDP, Federal purchases have decreased by almost half since 1960.

In relation to GDP, Federal expenditures have increased since 1960.

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