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1. Comparing the output and unemployment gaps shown on slide 18 of lecture 10: (a) Would you characterize the direction of these uctuations as generally
1. Comparing the output and unemployment gaps shown on slide 18 of lecture 10: (a) Would you characterize the direction of these uctuations as generally procyclical, countercyclical, or acyclical? Why? (b) Many of the relationships in our macroeconomic models are linear; two variables are related by the equation for a straight line y = m$+b. What is the relationship between (i) the sign of the slope m and (ii) the cyclicality (pro or counter) seen in a time series? Briey explain
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