The idea that as gross domestic product (GDP) per capita grows, the amount people dedicate to buying agricultural goods, oil, and minerals decreases as a percentage of their total expenditure even if it grows in absolute terms is known as income volatility.

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This idea is known as Engel's Law, which states that as income rises, the proportion of income spent on food falls, even if absolute expenditure on food rises. It does not specifically refer to income volatility, which is about the unpredictability in income levels over time.

The Idea That as Gross Domestic Product (GDP) Per Capita