If a variable moves in the opposite direction from real GDP and other measures of aggregate economic activity,it is a ________ variable.

Question

Quizplus · Accepted Answer

A variable that moves in the opposite direction from real GDP and other measures of aggregate economic activity is called a countercyclical variable. A procyclical variable moves in the same direction as real GDP and other measures of aggregate economic activity. Coincidental variables vary with movements in real GDP and other measures of aggregate economic activity. "Recessionary" is not a term used to describe the behavior of a variable.

If a Variable Moves in the Opposite Direction from Real