Consumer spending ________ and investment spending ________
A) follows a smooth trend; is the most stable component of aggregate expenditure
B) is very volatile and subject to fluctuations; follows a smooth trend
C) follows a smooth trend; is more volatile and subject to fluctuations
D) is very erratic; is also erratic, but less erratic than consumer spending
C
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If the per-worker production function shifts up
A) it now takes more capital per hour worked to get the same amount of real GDP per hour worked. B) the per-worker production function becomes flatter. C) an economy can increase its real GDP per hour worked without changing the level of capital per hour worked. D) negative technological change has occurred in the economy.
In the mid 1980s, the massive current account deficits were related to massive U.S. government budget deficits
Indicate whether the statement is true or false