Investment Expenditure Is the Volatile Component of GDP, and Changes

question 69

Multiple Choice

Investment expenditure is the volatile component of GDP, and changes in investment are associated with business- cycle fluctuations.

• A)most; weakly
• B)least; strongly
• C)most; strongly
• D)least; weakly
• E)least; not

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Definitions:

Price-inelastic

Describes a market situation where the quantity demanded of a product does not change significantly when its price changes.

Price-sensitive

Refers to the degree to which the demand for a product or service is affected by changes in its price.

Unitary-elastic

A demand or supply situation where the percentage change in quantity demanded or supplied is exactly equal to the percentage change in price.

Demand Curve

A graph showing the relationship between the price of a good and the quantity of that good consumers are willing and able to purchase at various prices.