When a macroeconomic aggregate is procyclical
A) it grows faster than GDP.
B) its deviations from trend generally change before the deviations from trend in GDP do.
C) its deviations from trend generally change more that the deviations from trend in GDP.
D) its deviations from trend are more often of the same sign as the deviations from trend in GDP.

Question

Quizplus · Accepted Answer

A procyclical macroeconomic aggregate moves in the same direction as GDP, meaning its deviations from trend are typically of the same sign as GDP's deviations from trend.

When a Macroeconomic Aggregate Is Procyclical