If deviations from trend in a macroeconomic variable are positively correlated with deviations from trend in real GDP, that variable is said to be
A) useful in predicting future movements in real GDP.
B) procyclical.
C) countercyclical.
D) acyclical.
B
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An increase in each of the following factors would normally provide a subsequent increase in quantity demanded, except:
a. price of substitute goods b. level of competitor advertising c. consumer income level d. consumer desires for goods and services e. a and b
Most Americans experience significant fluctuations in their economic well-being from one year to the next
a. True b. False Indicate whether the statement is true or false
The structural deficit/surplus budget
a. measures the federal budget deficit/surplus as if the economy were at full employment. b. measures the federal budget deficit/surplus as if the economy were in recession. c. measures the federal budget deficit/surplus as if the economy were suffering from high inflation. d. is used when structural unemployment is at a peak.
France, Germany, and Italy are:
A. all members of the European Union but not the Euro system. B. not members of either the Euro system or the European Union; they have their own economic union. C. all members of the Euro system but not the European Union. D. all members of the European Union and the Euro system.