For the purposes of GDP accounting, government purchases include

Question

Quizplus · Accepted Answer

Government purchases refer to the goods and services that the government buys. Purchases of new military equipment are a form of government spending that is included in the calculation of GDP.

Answer: B 
 Social Security payments are not considered government purchases, but rather transfer payments to individuals. These types of payments are not included in the calculation of GDP.

Answer: C 
 Direct transfer payments by the government to other individuals are not considered government purchases, but rather transfer payments. These types of payments are not included in the calculation of GDP.

Answer: D 
 Welfare payments are not considered government purchases, but rather transfer payments to individuals. These types of payments are not included in the calculation of GDP.

For the Purposes of GDP Accounting, Government Purchases Include