If Deviations from Trend in a Macroeconomic Variable Are Negatively

question 43

Multiple Choice

If deviations from trend in a macroeconomic variable are negatively correlated with deviations from trend in real GDP, that variable is said to be

• A) useless in predicting future movements in real GDP.
• B) procyclical.
• C) countercyclical.
• D) acyclical.
• E) uncorrelated.

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