If a Variable Moves in the Opposite Direction from Real

question 83

Multiple Choice

If a variable moves in the opposite direction from real GDP and other measures of aggregate economic activity,it is a ________ variable.

• A) procyclical
• B) countercyclical
• C) coincidental
• D) recessionary

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Definitions:

Rent-Seeking

The practice of seeking to increase one's share of existing wealth without creating new wealth, often through manipulation or exploitation of the legal or political environment.

Monopoly Powers

The ability of a single seller or company to control the market for a good or service, often resulting in limited competition.

Impossibility Theorem

A theory, often associated with economist Kenneth Arrow, stating that no rank-order voting system can simultaneously fulfill certain fairness criteria.

Paul Samuelson

An American economist known for his contributions to many areas of economic theory; the first American to win the Nobel Memorial Prize in Economic Sciences.