How does each of the following variables behave over the business cycle? Develop graphs to show your
Question:
How does each of the following variables behave over the business cycle? Develop graphs to show your results and give economic explanations.
a. Real imports
b. Federal government receipts
c. Housing starts
d. Capacity utilization rate, manufacturing
e. Average weekly hours, manufacturing
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a Real Imports Real imports typically exhibit a procyclical behavior meaning they tend to increase during economic expansions and decrease during rece...View the full answer
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