With Respect to GDP, How Are Transfer Payments Treated

question 160

Multiple Choice

With respect to GDP, how are transfer payments treated?

• A) They are included in GDP because they represent income to individuals.
• B) They are not included in GDP because they are not payments for currently produced goods or services.
• C) They are included in GDP because the income will be spent for consumption.
• D) They are not included in GDP because taxes will have to be raised to pay for them.

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