With Respect to GDP, How Is Unemployment Compensation Treated

Multiple Choice

With respect to GDP, how is unemployment compensation treated?

A) It is included as part of GDP because it represents income.
B) It is not included as part of GDP because it is a transfer payment.
C) It is included as part of GDP because the recipients must have worked in the past to qualify.
D) It is not included as part of GDP because the payments reduce business profits.