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 do not involve any current production of goods and services, so they are not included in the calculation of GDP.

Transfer Payments Are