Fluctuations in consumption
A)are noticeably smaller during recessions than during expansions
B)are roughly similar to fluctuations in investment
C)are roughly similar to fluctuations in GDP
D)are closely followed by economic forecasters because those fluctuations often signal that a recession will occur
E)account for most of the variability in GDP

Question

Quizplus · Accepted Answer

Consumption fluctuations are roughly similar to fluctuations in GDP because consumption is a large component of GDP and tends to move in tandem with overall economic activity.

Fluctuations in Consumption