The government purchases component of GDP does not include spending on transfer payments such as social security.

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The ‘government purchases’ component of GDP does not include spending on transfer payments such as social security. Thinking about the definition of GDP, explain why transfer payments are excluded.

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Economics

ISBN: 9781408093795

3rd Edition

Authors: Mark P. Taylor, N. Gregory Mankiw

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Question Posted: Nov 04, 2024 07:01 AM

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The government purchases component of GDP does not include spending on transfer payments such as Social Security. Thinking about the definition of GDP, explain why transfer payments are excluded.
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The government purchases component of GDP does not include spending on transfer payments such as social security.

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Economics

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