Demographics and savings suggest that consumption's share of GDP is likely to ________ in the future.

Question

Quizplus · Accepted Answer

As the population ages and the proportion of elderly people increases, their consumption levels tend to decrease, leading to a drop in consumption's share of GDP. Additionally, as individuals save more for retirement, they may reduce their current consumption in favor of savings, further contributing to a decline in consumption's share of GDP.

Demographics and Savings Suggest That Consumption's Share of GDP Is