Consider the following variables: real GDP, consumer spending, investment, unemployment, inflation, stock prices, interest rates, and credit
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Consider the following variables: real GDP, consumer spending, investment, unemployment, inflation, stock prices, interest rates, and credit spreads. Classify each as procyclical, countercyclical, or acyclical, and as leading, lagging, or coincident.
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Heres how we can classify each variable 1 Real GDP Procyclical Yes moves in the same direction as the business cycle Leading lagging or coincident Typ...View the full answer
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