yes absolutely, government spending increases gdp in almost everyday. for instance, defense spending, people being paid, those people have jobs, those people are producing goods, and spending, putting more money into the economy and therefore stimulating other peoples business.Example: all the people that were put to work to increase the BP oil spill.
Yes, government spending is included in the expenditures calculations of GDP.
no
A decrease in aggregate demand, an increase in the reserve requirement, an increase in the discount rate, increase in interest rates, a decrease in government spending.
unemployment benefits A+
consumption, investment, government spending, net exports
Yes, government spending is included in the expenditures calculations of GDP.
From such an action (increase in government spending by 5 billion and a Marginal Propensity to Consume of 90%), the GDP would increase (in the scope of simplicity) by 4.5 billion. This is because government expenditures is counted in GDP, and in this case 90% of it is consumed by the populace, so 5B * .9 = 45B. But, being that the GDP is Consumption + Gross Investment + Govt. Spending +(-) Imports/exports, one could suggest that the GDP would increase by just 5B because that which is not consumed is saved (and thus invested).
no
Consumption is the largest part of GDP.
I'll give you the expenditure approach Consumption- share of GDP from consumer spending Investment-share from firm investment Government Spending-share of government spending Net Exports (exports-Imports)
A decrease in aggregate demand, an increase in the reserve requirement, an increase in the discount rate, increase in interest rates, a decrease in government spending.
Greater levels of investment
unemployment benefits A+
Greater levels of investment
Greater levels of iinvestment
consumption, investment, government spending, net exports
Indonesia government spending to GDP is 18% (lowest among G20). From spending and tax point of view is limited.