Government purchases, under the expenditure approach to GDP accounting, do not include:
A)state government purchases of plumbing services.
B)Social Security benefit payments to retirees.
C)the salaries of military officers.
D)federal government purchases of computers.

Question

Government purchases, under the expenditure approach to GDP accounting, do not include:
A)​state government purchases of plumbing services.
B)​Social Security benefit payments to retirees.
C)​the salaries of military officers.
D)​federal government purchases of computers.

Quizplus · Accepted Answer

Social Security benefit payments to retirees are considered transfer payments rather than purchases of goods or services, and therefore are not counted in government purchases under GDP accounting.

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