Which area of government spending is NOT included in government purchases in the calculation of GDP?
A) education
B) military
C) salaries of government employees
D) transfer payments

Question

Quizplus · Accepted Answer

Transfer payments are not included in government purchases when calculating GDP because they are not payments for goods or services. Instead, they are payments made by the government to individuals, such as social security benefits, that do not directly reflect the purchase of goods or services.

Which Area of Government Spending Is NOT Included in Government