Data on annual percentage changes in real GDP,consumption,and investment in the United States shows that fluctuations in investment _____.
A)are noticeably smaller during expansions than during recessions
B)are roughly similar to fluctuations in consumption
C)are roughly similar to fluctuations in GDP
D)are closely followed by economic forecasters because those fluctuations often signal that a recession will occur
E)account for most of the variability in GDP

Question

Quizplus · Accepted Answer

Investment is more volatile than consumption and accounts for most of the variability in GDP, as it tends to fluctuate significantly more during economic cycles.

Data on Annual Percentage Changes in Real GDP,consumption,and Investment in the United