The most volatile GDP category under the expenditure approach is:
A)wages and salaries.
B)investment.
C)consumption.
D)government purchases.

Question

The most volatile GDP category under the expenditure approach is:
A)​wages and salaries.
B)​investment.
C)​consumption.
D)​government purchases.

Quizplus · Accepted Answer

Investment tends to vary greatly in response to changes in economic conditions, such as interest rates, profitability, and investor confidence. Consumption and government purchases are typically more stable in the short run, and wages and salaries are largely determined by contractual agreements and are therefore less volatile.

The Most Volatile GDP Category Under the Expenditure Approach Is