What causes GDP to fluctuate?

  1. ezeconomics profile image70
    ezeconomicsposted 5 years ago

    What causes GDP to fluctuate?

    What are the Determinants of GDP Fluctuations?


  2. profile image0
    JThomp42posted 5 years ago

    Since GDP describes the total value of all goods and services in an economy, then consumer consumption is a major source of GDP fluctuations. This is because the more people buy, the more needs to be produced in order to meet demand; the less they buy, the less needs to be produced. A high GDP partly reflects citizens able to buy more than just their bare necessities and can moving on to things such as computers, high-end clothing and portable music players. The converse is also true.