The largest component of GDP in the expenditure approach is (i) personal consumption expenditures. (:3; gross private domestic investment. O government expenditure on goods and services. O net exports. The business cycle refers to O fluctuations in the level of real GDP around potential GDP. O changes in the level of nominal GDP. O changes in the level of the stock market. O changes in the level of employment.According to the BEA, in the second quarter of 2012 nominal GDP rose by 3.3 percent and real GDP rose by 1.7 percent. The difference between the change in nominal GDP and the change in real GDP could be explained by O an increase in prices of final goods and services produced. O a decrease in prices of final goods and services produced. O an increase in quantity of final goods and services produced. O a decrease in quantity of final goods and services produced.According to the BEA, in the second quarter of 2012 state and local government spending on goods and services changed by -1.4 percent. Using the expenditure approach, this change leads to O a decrease in government expenditure on goods and services. O no change in GDP because only federal government expenditures are included in GDP. O a decrease in gross private domestic investment. O no change in GDP because state and local government expenditure is always canceled out by federal government expenditure.Real Great; Dome5tic Product is. O the amount of people unemployed divided by the total labor force. O the productivity.r of labor. O the most that can be produced when the economy's resourceS are fully employed. 0 the value of total production linked back to the prices of a Single veer. An expansion occurs when the level of real GDP is increasing. O decreasing. O at a cyclical peak. O at a cyclical trough