Which of the following is not considered a component of government purchases in calculating GDP?
A)the cost of a new federal prison
B)the cost of building a new road
C)unemployment compensation payments
D)payments made to plow public roads after a snowstorm
E)the cost of police protection

Question

Quizplus · Accepted Answer

Unemployment compensation payments are considered a transfer payment, not a government purchase, and are not included in the calculation of GDP.

Which of the Following Is Not Considered a Component of Government