Purchase of weapons for the military is part of this expenditures approach for calculating the gdp.

The answer is True.

Explanation:

Yes, purchase of weapons for the military is part of this expenditures approach for calculating the GDP.

In expenditure approach GDP is calculated by adding the sum of all final good and services purchased in an economy. In form of equation it can be shown as

Y = C + I + G + (X − M)

Where

“C” (consumption)

“I” (investment)

“G” ( government spending )

“X” (exports)

“M” (imports)  

Government spending is the sum of government expenditures on final goods and services. It includes salaries of public servants, purchase of weapons for the military, and any investment expenditure by a government. However, since GDP is a measure of productivity, transfer payments made by the government are not counted because these payment do not reflect a purchase by the government, rather a movement of income. They are captured in “C” when the payments are spent.

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