Explore BrainMass
Share

Explore BrainMass

    GDP components

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    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.

    © BrainMass Inc. brainmass.com October 9, 2019, 7:35 pm ad1c9bdddf
    https://brainmass.com/economics/macroeconomics/government-component-gdp-122780

    Solution Preview

    The answer is Social Security payments. But here is the reason behind it. The reason why that is not ...

    Solution Summary

    The solution explains the several components of GDP.

    $2.19