Please help understand the subtleties of what is and is not included in the government component of the GDP when using the expenditure approach.
One of the following is not included in the government spending component:
Social Security Payments
The wages paid by a local government to the workers in it's welfare system
The wages paid by a local government to its road crew
The federal government's purchase of a submarine from a shipbuilder.
The answer is Social Security payments. But here is the reason behind it. The reason why that is not ...
The solution explains the several components of GDP.