Transfer payments are included in which category under the expenditure approach to GDP accounting?
a. consumption
b. government purchases
c. net exports
d. Transfer payments are not directly included in GDP calculations.
Question 2
The consumption function becomes flatter if:
a. the average propensity to spend increases.
b. the marginal propensity to spend increases.
c. the marginal propensity to save increases.
d. the autonomous consumption increases.
e. the autonomous consumption decreases.
