Question

For purposes of calculating GDP using the expenditure approach, which of the following payments is not included in the government spending component? A. Social Security pensions B. The wages paid by a local government to its road crew C. The wages paid by a state government to the workers in its welfare department D. The federal governments purchase of a submarine from a shipbuilder

Answer 1

The answer is : A. Social Security pensions. Social Security payments are not included in the U.S. definition of the gross domestic product (GDP). For the purposes of calculating GDP, government spending does not include transfer payments – the reallocation of money from one party to another – which includes Social Security, Medicare, etc.

Answer 2

The answer is : A. Social Security pensions. Social Security payments are not included in the U.S. definition of the gross domestic product (GDP). For the purposes of calculating GDP, government spending does not include transfer payments – the reallocation of money from one party to another – which includes Social Security, Medicare, etc.

Answer 3

The answer is : A. Social Security pensions. Social Security payments are not included in the U.S. definition of the gross domestic product (GDP). For the purposes of calculating GDP, government spending does not include transfer payments – the reallocation of money from one party to another – which includes Social Security, Medicare, etc.

Answer 4

The answer is : A. Social Security pensions. Social Security payments are not included in the U.S. definition of the gross domestic product (GDP). For the purposes of calculating GDP, government spending does not include transfer payments – the reallocation of money from one party to another – which includes Social Security, Medicare, etc.