One Reason Why Consumption Expenditure Is Less Volatile Than GDP

question 8

Multiple Choice

One reason why consumption expenditure is less volatile than GDP is that

• A) personal disposable income is more volatile than GDP.
• B) personal disposable income is less volatile than GDP.
• C) the progressive income tax structure of the United States is too weak to generate higher and lower collections during booms and recessions, respectively.
• D) retained corporate earnings increase during recessions because firms use the slow times to retool for the next upturn.
• E) none of the above because the statement is false.

---

Definitions:

Organization

A structured group of people working together to achieve specific goals through a coordinated effort.

Ethical Intensity

Refers to the degree of importance or significance given to an ethical issue, determined by its potential impact on stakeholders and the urgency of addressing it.

Factors Influencing

Elements or conditions that affect the outcome of a process or the behavior of individuals.

Behaviors

Observable actions or reactions of individuals or groups in response to external or internal stimuli.