Which of the following would NOT be included in the calculation of GDP as a government purchase?
A) military payrolls
B) distribution of food stamps
C) purchase of 100 new C-5A aircraft
D) hiring 1,000 workers to build a new interstate roadway

Question

Quizplus · Accepted Answer

Distribution of food stamps is a transfer payment, not a government purchase. GDP only includes final goods and services produced within a country in a given time period, and transfer payments do not represent the production of goods or services. Military payrolls, purchase of new aircraft, and hiring workers to build new infrastructure are all examples of government purchases that would be included in the calculation of GDP.

Which of the Following Would NOT Be Included in the Calculation