The government purchases component of GDP includes all of the following except:
A)federal spending on goods.
B)provincial and municipal spending on goods.
C)federal spending on transfer payments.
D)federal spending on services.

Question

Quizplus · Accepted Answer

Federal spending on transfer payments is not included in the government purchases component of GDP because it does not involve the purchase of goods or services.

The Government Purchases Component of GDP Includes All of the Following