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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Macroeconomics Plus Myeconlab With Pearson Global Edition

ISBN: 377221

9th Canadian Edition

Authors: Andrew B. Abel ,Ben Bernanke ,Dean Croushore

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