If Deviations from Trend in a Macroeconomic Variable Are Positively

question 11

Multiple Choice

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

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

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Definitions:

Encoding

The process of converting information into a form that can be stored in memory.

Retrieval

The process of accessing and bringing into consciousness information stored in memory.

Storage

In the context of cognition, it refers to the retention of information or memories in the brain over time.

Levels of Processing

A theory in cognitive psychology that suggests information can be processed at different depths, from shallow to deep, with the level of processing affecting memory retention.