In the national income accounts, government expenditure on goods and services exclude

Question

Quizplus · Accepted Answer

Government expenditure on goods and services only includes purchases made by the government that directly contribute to the production of goods and services. Transfer payments, such as Social Security and unemployment benefits, are considered transfers of income and not purchases of goods and services. Therefore, they are excluded from government expenditure in the national income accounts.

In the National Income Accounts, Government Expenditure on Goods and Services