For purposes of calculating GDP using the expenditure approach,which of the following payments is NOT included in the government spending component?

Question

Quizplus · Accepted Answer

Social Security pensions are not included in government spending as they are a transfer payment and not a purchase of goods or services. Government spending includes purchases of goods and services by the government, such as wages paid to government employees, and purchases of goods and services from private sector businesses, such as the federal government's purchase of a submarine from a shipbuilder.

For Purposes of Calculating GDP Using the Expenditure Approach,which of the Following