Which of the following is included in the government purchases category of GDP?
A) Social Security payments
B) welfare payments
C) payments to people in the military
D) interest on the national debt
E) payments to unemployed workers

Question

Quizplus · Accepted Answer

Government purchases include spending on goods and services by the government, such as payments to people in the military. Social Security payments, welfare payments, interest on the national debt, and payments to unemployed workers are not included in government purchases as they are transfer payments and do not involve the purchase of goods or services.

Which of the Following Is Included in the Government Purchases