Transfer payments are
A)excluded when calculating GDP because they only reflect inflation.
B)excluded when calculating GDP because they do not reflect current production.
C)included when calculating GDP because they are a category of investment spending.
D)included when calculating GDP because they increase the spending of recipients.

Question

Quizplus · Accepted Answer

Transfer payments are excluded from GDP calculations because they do not represent payment for goods or services produced, thus not reflecting current economic production.

Transfer Payments Are