In the Expenditures Approach, Transfer Payments Such as Unemployment Compensation

question 121

True/False

In the expenditures approach, transfer payments such as unemployment compensation are included in the G component of GDP.

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Definitions:

Third Party

An entity that is not directly involved in a transaction or contract but may be affected by it or may have interests that are affected.

Constructive Notice

Notice of agency termination that is usually given by publishing an announcement in a newspaper.

Agency Termination

The act of ending the relationship between an agent and their principal, which can occur for various reasons including mutual agreement, achievement of the agency's purpose, or breach of contract.

Reject the Performance

A buyer's right to refuse acceptance of goods if they do not conform to the contract in a commercial sales transaction.