If the correlation between GDP and y is 0.55,we say y is
A) procyclical.
B) acyclical.
C) countercyclical.
D) tricyclical.

Question

Quizplus · Accepted Answer

A positive correlation between GDP and y (which represents a business cycle indicator such as employment or inflation) indicates that y moves in the same direction as GDP, meaning that it is procyclical. This means that y tends to increase during economic expansions and decrease during economic contractions.

If the Correlation Between GDP and Y Is 0