If the correlation between GDP and y is 0,we say y is
A) procyclical.
B) acyclical.
C) countercyclical.
D) tricyclical.

Question

Quizplus · Accepted Answer

If the correlation between GDP and y is 0, it means that there is no relationship between GDP and y, indicating that y is acyclical. Procyclical means that y moves in the same direction as the business cycle, countercyclical means that y moves in the opposite direction of the business cycle, and tricyclical is not a valid term in economics.

If the Correlation Between GDP and Y Is 0,we Say