If Deviations from Trend in a Macroeconomic Variable Are Positively

question 29

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.

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