The most volatile GDP category under the expenditure approach is:

Question

Quizplus · Accepted Answer

Investment spending is typically the most volatile category of GDP because it is subject to changes in business confidence, interest rates, and other economic variables that can cause firms to cut back or increase their investment plans abruptly. The other components of GDP, such as consumption, government purchases, and net exports, tend to be more stable over time.

The Most Volatile GDP Category Under the Expenditure Approach Is