Which of the following macroeconomic variables is the most seasonally procyclical?
A)Expenditure on services
B)The unemployment rate
C)Expenditure on durable goods
D)The real wage

Question

Quizplus · Accepted Answer

Expenditure on durable goods tends to be the most seasonally procyclical, meaning that it fluctuates the most with the business cycle. This is because durable goods, such as cars and appliances, are often seen as discretionary purchases that consumers may delay or accelerate depending on their economic outlook. Conversely, expenditure on services tends to be the least procyclical because many services, such as healthcare and education, are considered non-discretionary and therefore less affected by changes in the economy. The unemployment rate and real wage are also procyclical, but to a lesser extent than expenditure on durable goods.

Which of the Following Macroeconomic Variables Is the Most Seasonally