Which of the following is the most volatile GDP category under the expenditure approach?
A)government purchases
B)wages and salaries
C)consumption
D)investment

Question

Quizplus · Accepted Answer

Investment is the most volatile GDP category under the expenditure approach as it is subject to fluctuations in business cycles and changes in interest rates, making it more prone to swings than the other components. Consumption and government purchases are relatively stable, while wages and salaries are generally less volatile than investment but still subject to fluctuations in employment and wage rates.

Which of the Following Is the Most Volatile GDP Category