Question

Which of the following is included in the government purchases category of GDP?

A) payments to people in the military
B) payments to unemployed workers
C) welfare payments
D) Social Security payments
E) interest on the national debt

Answer 1

Payments to people in the military are included in the government purchases category of GDP, while payments to unemployed workers, welfare payments, Social Security payments, and interest on the national debt are not.

Step-by-step explanation:

In the government purchases category of GDP, payments to people in the military are included (option A). These payments contribute to the purchase of goods and services, such as weapons, equipment, and supplies, for national defense. Payments to unemployed workers (option B) and welfare payments (option C) are not included in the government purchases category of GDP because they are considered transfer payments. Social Security payments (option D) and interest on the national debt (option E) are also not included in government purchases since they are classified as transfer payments or interest payments.