Government purchases and transfer payments are included in the measure of government expenditures.

Question

Quizplus · Accepted Answer

Both government purchases and transfer payments are considered as government expenditures since they involve the use of government funds for the provision of goods or services, or for the transfer of income or resources to individuals or other entities. Therefore, they are included in the measure of government spending, which is an important component of national income accounting and economic analysis.

Government Purchases and Transfer Payments Are Included in the Measure