Which statement is true?

A) The government sector of GDP is larger than the consumption sector.
B) The federal government spends about five percent of our GDP on interest on the debt.
C) The federal government spends more on Social Security and Medicare (combined) than it does on defense.
D) None is true.

GDP

Gross Domestic Product, the total market value of all finished goods and services produced within a country in a specific time period.

Government Sector

The part of the economy that is controlled by the state, including all government agencies and entities at the federal, state, and local levels.

Consumption Sector

A segment of the economy that involves individuals and households that use goods and services for personal needs rather than for manufacturing or resale.