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(a) Describe the behavior of consumption, investment, labor, produc- tivith and the price level over the business cycle both in terms of correlation, magnitude and
(a) Describe the behavior of consumption, investment, labor, produc- tivith and the price level over the business cycle both in terms of correlation, magnitude and lead vs lag. Give the economic in- tuition behind the results on consumption, productivity, wages and price levels. For some of these rather than the intuition you should explain the importance of this evidence in terms of support- ing/rejecting important theories in economics. This is especially true if the evidence itself is either weak or ambiguous. [Hint' this question is asking about 5 numbers and the intuition behind them. Those numbers are the eorreiutions between each data observation and GDP]
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