The government purchases component of GDP does not include spending on transfer payments such as Social Security.

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The government purchases component of GDP does not include spending on transfer payments such as Social Security. Thinking about the definition of GDP, explain why transfer payments are excluded.

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Essentials of Economics

ISBN: 978-1337091992

8th edition

Authors: N. Gregory Mankiw

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Question Posted: May 25, 2018 03:47 AM

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The government purchases component of GDP does not include spending on transfer payments such as Social Security.

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Essentials of Economics

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