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Mandatory government spending is _____________ as a share of GDP and are mostly increasing, purchases of...

Mandatory government spending is _____________ as a share of GDP and are mostly

increasing, purchases of goods & services by the government

decreasing, purchases of goods & services by the government

increasing, transfer payments

decreasing, transfer payments

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Answer #1

Mandatory government spending generally includes spending by the government on various programs for which it transfers certain amount to the account of the beneficiaries which is knows as transfer payments.These payments are made without any good or service being produced example-medicare, unemployment insurance, subsidies and social security and this results in an increase in governnment spending

Option(C)

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