Which of the following is included as government purchases in gross domestic product (GDP)?

Question

Quizplus · Accepted Answer

Government purchases in GDP are the goods and services purchased by the government to provide public services or policy goals. Therefore, payments to clerical workers hired by the government will be included in government purchases as they are a part of the production process to provide public services. Social security payments, welfare benefits, outright grants, and unemployment compensation are transfer payments and are not included in GDP as they do not represent production of goods and services.

Which of the Following Is Included as Government Purchases in Gross