Question
Which one statement is correct among the given
below?Solution
· Transfer payments include Social Security, unemployment insurance, welfare programs, and subsidies. These are not included in GDP because they are not payments for goods or services, but rather means of allocating money to achieve social ends · Net National product (NNP) is Gross National Product minus a depreciation allowance for the wearing out of machines and buildings during the period. As such, depreciation allowance is a part of Gross National Product · Direct taxes are included in NNP. · GDP stand for Gross Domestic Product
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