Government transfer payments are NOT included when computing GDP via the expenditures approach because they are

Question

Quizplus · Accepted Answer

Transfer payments are not payments for current production and therefore do not contribute to GDP. They are payments made by the government to individuals, such as Social Security or welfare benefits, but do not represent any new production of goods or services. Transfer payments are included in the calculation of national income via the income approach, but they are not considered when calculating GDP via the expenditure approach.

Government Transfer Payments Are NOT Included When Computing GDP Via