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:

Catharsis

The process of releasing, and thereby providing relief from, strong or repressed emotions.

United States

A federal republic consisting of 50 states, a federal district, five major self-governing territories, and various possessions, known for its large geographic size and diverse culture.

Japan

An island country located in East Asia, known for its rich culture, technological advancements, and historical significance.

Violent TV Programs

Television shows that include scenes of physical or psychological harm, often criticized for potentially inciting similar behaviors in viewers.