Which of the Following Parts of Real GDP Fluctuates Most

question 91

Multiple Choice

Which of the following parts of real GDP fluctuates most over the course of the business cycle?

• A)consumption
• B)government expenditures
• C)investment
• D)net exports

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Definitions:

IFRS 16

An International Financial Reporting Standard that specifies the principles for recognizing, measuring, presenting, and disclosing leases, primarily affecting lessees by requiring most leases to be reported on the balance sheet.

Manufacturer/Dealer Lessors

Entities that lease out assets they manufacture or sell, as part of their main business operations, to earn income and stimulate demand for their products.

Selling Profit

The financial gain achieved from selling goods or services, calculated as sales revenue minus the cost of goods sold and associated selling expenses.

Initial Direct Costs

Expenses directly associated with acquiring or originating a new loan or lease, including commissions, legal fees, and internal costs that are incremental and directly attributable to the transaction.