Question

The government purchases component of GDP does not include spending on transfer

payments such as social security. Thinking about the definition of GDP, explain why transfer

payments are excluded? GDP does not include the value of used good that are resold why would

including such transaction make GDP a less informative measure of economic well-being? (​

Answer 1

Answer:

No, Social Security payments are not included in the U.S. definition of the gross domestic product (GDP). Social Security payments are transfer payments, which are not included. ... Because of this, counting Social Security payments issued from the government to the recipient would be counting the same money twice.

Answer 2

Answer:

hope it's help full for u