Which of the following macroeconomic variables is countercyclical?
A)Real interest rates
B)Unemployment
C)Money growth
D)Consumption

Question

Quizplus · Accepted Answer

Unemployment is countercyclical, meaning it tends to rise during economic downturns and fall during economic expansions. This is because businesses often reduce their workforce during recessions to cut costs, leading to higher unemployment rates.

Which of the Following Macroeconomic Variables Is Countercyclical