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Government Spending on Transfer Payments Is Included in Government Purchases

question 125

True/False

Government spending on transfer payments is included in government purchases when calculating GDP because it results in the production of new goods and services.


Definitions:

Skills-based Immigration

This is a type of immigration policy that prioritizes the entry of individuals into a country based on their job skills, professional experience, and the ability to contribute to the labor market.

Local Economy

The economic system and activities that are confined to a specific geographic area or community.

Legal Immigration

The process by which individuals enter and reside in a country in accordance with the legal and regulatory standards of that country.

Legal Immigrants

Individuals who have been granted lawful permission by a country to live, work, or study there.

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