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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Principles Of Macroeconomics

ISBN: 9780324589993

5th Edition

Authors: N. Gregory Mankiw

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Question Posted: Sep 27, 2024 10:01 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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Principles Of Macroeconomics

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