IDNLearn.com is designed to help you find reliable answers quickly and easily. Join our knowledgeable community and get detailed, reliable answers to all your questions.

Macroeconomics-

Why are government transfer payments not included in the calculation of GDP?


Sagot :

Payments such as transfer payments and interest payments are excluded from the calculation of GDP because these payments do not represent purchases of goods and services, though income from transfer and interest payments may fund consumption expenditures or investment in other sectors of the economy