if you knew that the economy was falling into a recession, what would you expect to...
Homework Answers
Ans) Procyclical variables are those which are positively related to the other variable. While countercyclical variable is that which is negatively related.
In case of recession, investment, production, labour productivity and real wage will decline as they are Procyclical with the business cycle.
While unemployment will increase as it is countercyclical with the business cycle.
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if
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