Which of the following expenditure items is responsible for the decrease in real GDP during a recession?
A)mostly investment spending
B)mostly consumption spending
C)both consumption and investment spending, equally
D)sometimes mostly consumption and sometimes mostly investment

Question

Quizplus · Accepted Answer

Investment spending is typically more volatile and sensitive to economic conditions, making it a major contributor to GDP fluctuations during a recession.

Which of the Following Expenditure Items Is Responsible for the Decrease