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Government Transfer Payments Are Not Included in the Calculation of GDP

Question 37

Multiple Choice

Government transfer payments are not included in the calculation of GDP because:


A) they are ongoing payments and do not vary from year to year.
B) federal government expenditures alone are included in GDP.
C) they are issued by all levels of government and are difficult to add up.
D) they are not payments for a currently produced good or service.

Correct Answer:

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