Refer to the figure below. +16 +12 +8 Consumption Investment is more volatile than consumption. Investment -16 -20 -24 12 3 41 2 3 41 2 3 41 2 3 41 2 3 41 2 3 4 1 2 3 41 2 3 41 2 3 4 2000 2005 2001 2002 2003 2004 2006 2007 2008 CALENDAR QUARTER Instructions: Enter your responses as a percentage rounded to the nearest whole number. What was the range, in absolute value of percentage change, of the variation in quarterly growth rates between 2004 Q4 and 2006 Q4 of CHANGE FROM PRIOR QUARTER (percent)

Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter16: Information, Risk, And Insurance
Section: Chapter Questions
Problem 13RQ: How can moral hazard lead to more costly insurance premiums than one was expected?
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E3
Refer to the figure below.
+16
+12
+8
Consumption
+4
-8
Investment is more
12
volatile than consumption.
Investment
-16
-20
-24
1 2 3 41 2 3
2000
412 34 1 2 3 412 3 41 2 3 41 2 3
2004
412 3 41 2 3 4
2007
2001
2002
2003
2005
2006
2008
CALENDAR QUARTER
Instructions: Enter your responses as a percentage rounded to the nearest whole number.
What was the range, in absolute value of percentage change, of the variation in quarterly growth rates between 2004
Q4 and 2006 Q4 of
a. consumer spending?
|%
b. investment spending?
C. which is more volatile?
O Consumption spending
O Investment spending
CHANGE FROM PRIOR QUARTER (percent)
Transcribed Image Text:Refer to the figure below. +16 +12 +8 Consumption +4 -8 Investment is more 12 volatile than consumption. Investment -16 -20 -24 1 2 3 41 2 3 2000 412 34 1 2 3 412 3 41 2 3 41 2 3 2004 412 3 41 2 3 4 2007 2001 2002 2003 2005 2006 2008 CALENDAR QUARTER Instructions: Enter your responses as a percentage rounded to the nearest whole number. What was the range, in absolute value of percentage change, of the variation in quarterly growth rates between 2004 Q4 and 2006 Q4 of a. consumer spending? |% b. investment spending? C. which is more volatile? O Consumption spending O Investment spending CHANGE FROM PRIOR QUARTER (percent)
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