The Social Security check received by your grandmother
A) is included in the GDP because it will be spent on goods and services.
B) is excluded from GDP calculations because it is a transfer payment.
C) is included in the GDP because she is entitled to it as a citizen.
D) is included in the GDP because it is part of her income.

Question

Quizplus · Accepted Answer

Social Security checks are transfer payments and do not represent any production of goods or services, and therefore they are excluded from GDP calculation.

The Social Security Check Received by Your Grandmother