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Which of the Following Macroeconomic Variables Is Procyclical and Leads

question 32

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Which of the following macroeconomic variables is procyclical and leads the business cycle?


Definitions:

Binomial Proportions

The probabilities of outcomes for a binomial distribution, which describes the number of successes in a fixed number of binary experiments.

Two-tail Test

A statistical hypothesis test in which the area of interest, or rejection region, is in both tails of the probability distribution, used to determine if there is a significant difference in either direction.

Z-test

A statistical test used to determine if there is a significant difference between sample and population means under the assumption of a normal distribution.

Chi-square Goodness-of-fit

A statistical test to determine how well observed data fit an expected distribution, generally used for categorical data.

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