Comovement relates to
A) the relationship between real and nominal interest rates.
B) the movement between price levels and real GDP over time.
C) macroeconomic variables fluctuating together in patterns that exhibit strong regularities.
D) the movement of business cycles over time.
E) the frequency of the business cycles.

Question

Quizplus · Accepted Answer

Comovement refers to macroeconomic variables fluctuating together in patterns that exhibit strong regularities. It is not related to real and nominal interest rates (option A) or the relationship between price levels and real GDP over time (option B). While it is related to business cycles (option D), it is not specifically related to their frequency (option E). Therefore, the best choice is option C.

Comovement Relates to