An Economic Variable That Moves in the Same Direction as Aggregate

question 104

Multiple Choice

An economic variable that moves in the same direction as aggregate economic activity (up in expansions,down in contractions) is called

• A)procyclical.
• B)countercyclical.
• C)acyclical.
• D)a leading variable.

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Definitions:

Taxes Payable

Liabilities owed to government entities, representing taxes due to be paid by individuals or organizations.

Property Plant and Equipment

Long-term tangible assets held for business use and not expected to be converted to cash in the upcoming year.

Total Assets

The sum of all resources owned by a company as reflected on the balance sheet, including both current and non-current assets.

Accumulated Depreciation

Accumulated depreciation represents the total depreciation expense assigned to a fixed asset over its useful life, reducing its book value.