Government spending that does not contribute to GDP because income is only redistributed from one group of people to another, without any direct…
CA Foundation · Business Economics · PYQS · May 2026
Government spending that does not contribute to GDP because income is only redistributed from one group of people to another, without any direct contribution by the recipients is known as:
Suggested Answer and Working Notes:
Correct Answer: Option (C)
C. Transfer payments
Topics: Public Finance
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