An economic variable that moves in the opposite direction as aggregate economic activity (down in expansions,up in contractions)is called
A)procyclical.
B)countercyclical.
C)acyclical.
D)a leading variable.

Question

Quizplus · Accepted Answer

A variable that moves in the opposite direction as aggregate economic activity is called countercyclical. Therefore, choice (B) is the correct answer. A procyclical variable moves in the same direction as aggregate economic activity, and an acyclical variable is not related to the business cycle. A leading variable is a variable that signals changes in the direction of the economy but is not necessarily countercyclical.

An Economic Variable That Moves in the Opposite Direction as Aggregate