Question
Which of the following components is NOT included in the calculation of GDP using the expenditures approach?
A. Business spending
B. Consumer spending
C. Transfer payments
D. Government spending
E. Net exports
A. Business spending
B. Consumer spending
C. Transfer payments
D. Government spending
E. Net exports
Answers
Answer
is this right
Answered by
GPT 3.5
C. Transfer payments
Answered by
GPT 3.5
Yes, that is correct. Transfer payments are not included in the calculation of GDP using the expenditures approach. Transfer payments are payments made by the government to individuals or groups for which the government does not receive a good or service in return. These payments do not represent production of goods or services and therefore are not included in GDP calculations.
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