Great explanations to this problem please!

Q10. The volatility of investment. Below are three plots: the first two show the annual percentage change in investment (blue line) and GDP (red line) since 1950 for the United Kingdom (top) and the United States (bottom - the US plot also has US recessions shaded in grey). The third plot shows the level of investment in Es and $s for the UK & US'. From the pictures, it's clear that investment is more volatile than GDP. Why? FRED - Real Investment Expenditures in the United Kingdom@ - Real Gross Domestic Product at Market Prices in the United Kingdom@ 30 20 10 Percent Change from Year Ago 10 -20 .30 1960 1970 1980 1990 2000 2010 fred.stlouisfed.org myf.red/g/cyiw FRED - Real Gross Private Domestic Investment - Real Gross Domestic Product 70 60 50 40 30 Percent Change from Year Ago 20 O -10 -20 -30 1950 1960 1970 1980 1990 2000 2010 fred.stlouisfed.org myf.red/g/cyi