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

Question

Quizplus · Accepted Answer

Real consumption tends to be procyclical, moving in the same direction as real GDP, but it is generally less variable than real GDP. This means that while consumption increases during economic expansions and decreases during recessions, the fluctuations in consumption are typically not as pronounced as those in the overall economy.

Real Consumption Tends to Be