The largest component of GDP is consumption. True True False Uncertain Part 2 Government spending, including transfers, was equal to % of GDP in 2014. ▼ True False Uncertain Part 3 The propensity to consume has to be positive, but otherwise it can take on any positive value. ▼ True False Uncertain Part 4 One factor in the 2009 recession was a drop in the value of the parameter . ▼ True False Uncertain Part 5 Fiscal policy describes the choice of government spending and taxes and is treated as exogenous in our goods market model. ▼ True False Uncertain Part 6 The equilibrium condition for the goods market states that consumption equals output. ▼ True False Uncertain Part 7 An increase of one unit in government spending leads to an increase of one unit in equilibrium output. ▼ True False Uncertain Part 8 An increase in the propensity to consume leads to a decrease in output. ▼ True False Uncertain