Question: 2. (10 points) In the data, the trade deficit appears to be procyclical (- take this as a statement of fact). Define what is meant

2. (10 points) In the data, the trade deficit appears to be procyclical (- take this as a statement of fact). Define what is meant by a trade deficit and by the trade deficit exhibiting procyclical behavior. Using one of the open economy models studied, use a diagram to outline a possible explanation for the procyclical behavior of the trade deficit. Note: you may include a brief explanation to accompany your diagram to detail the mechanism by which we are able to obtain a procyclical trade deficit

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