If Deviations from Trend in a Macroeconomic Variable Are Positively

question 58

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:

Bank Account Numbers

Unique identifiers assigned to an account in a bank, used for identification and processing financial transactions.

Employer's Quarterly Federal Tax Return

A form filed by employers to report income taxes, Social Security tax, or Medicare tax withheld from employee's paychecks, and to pay the employer's portion of Social Security or Medicare tax.

Form 941

A federal tax form used by employers to report quarterly federal income tax withheld from employees' wages and payroll taxes.

Form 940

A tax form filed by employers to report annual Federal Unemployment Taxes (FUTA).