Comovement can be discussed by
A)looking at the peaks and troughs of the business cycle.
B)economic forecasting models.
C)looking at the frequency of the business cycle.
D)looking at the amplitude of the business cycle.
E)plotting the percentage deviations from trend in two economic variables.

Question

Quizplus · Accepted Answer

Plotting the percentage deviations from trend in two economic variables can show the degree of comovement between them, as movements in one variable may be associated with corresponding movements in the other. This approach allows for a detailed analysis of the relationship between two economic variables, rather than just looking at overall peaks and troughs in the business cycle or using economic forecasting models.

Comovement Can Be Discussed by