Real Consumption Tends to Be

question 42

Multiple Choice

Real consumption tends to be

• A) procyclical and less variable than real GDP.
• B) procyclical and more variable than real GDP.
• C) countercyclical and less variable than real GDP.
• D) countercyclical and more variable than real GDP.
• E) acyclical with real GDP.

---

Definitions:

Human Resources

The abilities, skills, and health of human beings that contribute to the production of both current and future output. Investment in training and education can increase the supply of human resources.

Physical Resources

Tangible assets used in the production or delivery of goods and services, such as machinery, buildings, and raw materials.

Scarcity

The fundamental economic problem of having seemingly unlimited human wants and needs in a world of limited resources.

Opportunity Cost

Renouncing the possibility of gains from different alternatives by making a single choice.