Which of the following statements correctly explain why transfer payments are excluded from GDP calculations? Select all that apply.

Transfer payments are excluded from GDP calculations because they do not represent the production of goods or services. GDP measures the total value of all final goods and services produced in a country during a specific time period. Transfer payments, like social security benefits or unemployment benefits, are simply money given from one group to another without any exchange of goods or services. For example, when the government pays a person unemployment benefits, it does not create any new products or contribute to the economy's output. Therefore, including transfer payments would inflate GDP figures without reflecting actual economic activity.