Which of the following would be counted in the government purchases component of GDP?

Question

Quizplus · Accepted Answer

Only state and federal government expenditures for highway construction would be counted in the government purchases component of GDP, as they directly contribute to the production of public goods and services. The other options do not fall under this category. Social Security payments and AFDC payments are transfer payments, while local government spending for retirement benefits for former employees represents an income transfer to retired individuals rather than a purchase of goods or services.

Which of the Following Would Be Counted in the Government