Identify the comovement (i.e., direction and timing) of the following variables over a business cycle:
(a) industrial production
(b) unemployment
(c) nominal interest rates
(d) nominal money supply growth
(e) investment
(a) Industrial production is a procyclical and coincident variable.
(b) Unemployment is a countercyclical variable whose timing is unclassified by the Conference Board.
(c) Nominal interest rates are procyclical and lagging.
(d) Nominal money supply growth is a procyclical and leading variable.
(e) Investment includes inventory investment and residential investment, which are procyclical and leading variables; it also includes business fixed investment, which is a procyclical and coincident variable.
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Which one of the following was not a goal of the Navigation Acts?
a. Protect and encourage English and colonial shipping. b. Ensure that major colonial imports from Europe were shipped from British ports. c. Ensure that the bulk of desired colonial products were shipped to England. d. Prevent West Indian planters from increasing their control over the U.S. colonial trade.
A decrease in U.S. interest rates will, other things equal, tend to: a. lower the foreign exchange value of the dollar. b. help U.S. exporters
c. cause a net outflow of capital from the U.S. d. do all of the above.