Government purchases, under the expenditure approach to GDP accounting, includes all of the following except:
A)welfare payments.
B)salaries of senators.
C)fighter jets purchased by the government.
D)the military payroll.

Question

Government purchases, under the expenditure approach to GDP accounting, includes all of the following except:
A)​welfare payments.
B)​salaries of senators.
C)​fighter jets purchased by the government.
D)​the military payroll.

Quizplus · Accepted Answer

Welfare payments are classified as transfer payments and are not included in government purchases as they do not represent a purchase of goods or services by the government for its own use.

Government Purchases, Under the Expenditure Approach to GDP Accounting, Includes