In the data,which of the following is most volatile?
A) real GDP
B) consumption of durables
C) consumption of nondurables
D) consumption of services
E) aggregate income

Question

Quizplus · Accepted Answer

Consumption of durables tends to be the most volatile component of GDP due to fluctuations in consumer confidence, interest rates and household income. Real GDP and aggregate income tend to be less volatile as they reflect the overall level of economic activity, while consumption of nondurables and services are typically more stable as they represent essential household expenses that are less likely to be deferred during periods of economic uncertainty.

In the Data,which of the Following Is Most Volatile