In calculating GDP, governmental transfer payments, such as Social Security or unemployment compensation, are
A) not counted.
B) counted as investment spending.
C) counted as government spending.
D) counted as consumption spending.

Question

Quizplus · Accepted Answer

Governmental transfer payments, such as Social Security or unemployment compensation, are not counted in GDP calculations because they do not represent payment for the production of goods or services.

In Calculating GDP, Governmental Transfer Payments, Such as Social Security