Which of the following is included as government purchases in gross domestic product (GDP)?
A)Social Security payments to elderly citizens
B)Welfare benefits distributed to the poor
C)Outright grants from government to recipients
D)Payments to clerical workers hired by government
E)Unemployment compensation benefits

Question

Quizplus · Accepted Answer

Government purchases in GDP include payments made directly by the government for goods and services, such as payments to clerical workers hired by the government. Social Security payments, welfare benefits, outright grants, and unemployment compensation benefits are not considered government purchases in GDP.

Which of the Following Is Included as Government Purchases in Gross