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Advanced Placement (AP)Advanced Placement (AP)
13 February, 00:03

Define transfer payments. What is their effect on gdp?

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  1. 13 February, 00:18
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    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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