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  • 13-09-2018
  • Advanced Placement (AP)
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Define transfer payments. What is their effect on gdp?

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bethanynhall9046
bethanynhall9046 bethanynhall9046
  • 13-09-2018

For the purposes of calculating gross domestic product (GDP), government spending does not include transfer payments – the reallocation of money from one party to another – which includes Social Security, Medicare, unemployment insurance, welfare programs and subsidies.

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