Which of the following is included in the government purchases category of gross domestic product (GDP)?
A) Social Security payments
B) welfare payments
C) payments to people in the military
D) interest on the national debt
E) payments to unemployed workers

Question

Quizplus · Accepted Answer

Government purchases include spending on goods and services by federal, state, and local governments. Payments to people in the military are included in this category. Social Security payments and welfare payments are transfer payments and are not included in GDP. Interest on the national debt is also not included in GDP as it is not spending on goods or services. Payments to unemployed workers are considered transfer payments and are not included in GDP.

Which of the Following Is Included in the Government Purchases