When an unemployed worker receives a payment from the government as a result of being unemployed,it is
A) included in the consumption category of GDP.
B) included in the investment category of GDP.
C) included in the government purchases category of GDP.
D) included in the net export category of GDP.
E) not included in any of the expenditure categories.

Question

Quizplus · Accepted Answer

Unemployment benefits are classified as transfer payments and are not included in any of the expenditure categories in GDP because they do not represent new production of goods and services.

When an Unemployed Worker Receives a Payment from the Government