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

Question

Quizplus · Accepted Answer

Plotting the percentage deviations from trend in two economic variables allows for an analysis of the correlation between the two variables during different phases of the business cycle. This can help identify whether the variables tend to move together (positive comovement), move in opposite directions (negative comovement), or move independently (no comovement), providing insights into the overall cohesiveness of the economy.

Comovement Can Be Discussed by