5. The direction of a variable relative to the business cyele can be procyclical, countercyclical, or acyclical.
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5. The direction of a variable relative to the business cyele can be procyclical, countercyclical, or acyclical. A procyclical variable moves in the same direction as aggregate economic activity, rising in booms and falling in recessions. A countercyclical variable moves oppositely to aggregate economic activity, falling in booms and rising in recessions. An acyclical variable has no clear cyclical pattern.
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Related Book For
Macroeconomics Plus Myeconlab With Pearson Global Edition
ISBN: 377221
9th Canadian Edition
Authors: Andrew B. Abel ,Ben Bernanke ,Dean Croushore
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