GDP also takes into account government spending, but it doesn't take into account transfers like Social Security payments.This is done to avoid double-counting Social Security expenditures.
Why are transfer payments excluded from GDP estimation?
Because there are no goods or services exchanged for them, transfer payments are not included in the GDP.These payments are only made for social good.Social security, Medicare, and Medicaid are all well-known examples of transfer payments in the United States.
Why are move installments not considered piece of Gross domestic product?
Due to the fact that they do not reflect actual economic production, transfer payments are excluded from GDP.
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