Real consumption tends to be
A) procyclical and less variable than real GDP.
B) procyclical and more variable than real GDP.
C) countercyclical and less variable than real GDP.
D) countercyclical and more variable than real GDP.

Question

Quizplus · Accepted Answer

Real consumption is procyclical, meaning it tends to move in the same direction as the overall economy, and it is generally less variable than real GDP because consumption is a more stable component of GDP compared to investment or government spending.

Real Consumption Tends to Be