In their study on business cycles,Backus and Kehoe found
A) correlations amongst real economic variables differed greatly among countries.
B) price level was consistently procyclical.
C) no consistent correlations amongst economic variables.
D) price level was consistently countercyclical.
E) correlations amongst real economic variables were similar across countries and over time.

Question

Quizplus · Accepted Answer

Backus and Kehoe found that correlations amongst real economic variables were similar across countries and over time, indicating a pattern in how these variables interact during business cycles.

In Their Study on Business Cycles,Backus and Kehoe Found