The government purchases component of GDP includes
A) purchases of final goods and services.
B) interest payments on government debt.
C) transfer payments.
D) pensions paid to government workers.
E) payments made to social security recipients.

Question

Quizplus · Accepted Answer

The government purchases component of GDP includes purchases of final goods and services. Interest payments on government debt, transfer payments, pensions paid to government workers, and payments made to social security recipients are not included in this component.

The Government Purchases Component of GDP Includes