If the correlation between GDP and y is 0.75, we say y is
A) procyclical.
B) countercyclical.
C) acyclical.
D) negatively correlated.
E) cyclical.

Name: If the correlation between GDP and y is 0.75, we say y is A) procyclical. B) countercyclical. C) acyclical. D) negatively correlated. E) cyclical.
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Question

Quizplus · Accepted Answer

A correlation coefficient of 0.75 indicates a positive linear relationship between GDP and y. When y moves in the same direction as GDP, it is considered procyclical.

If the Correlation Between GDP and Y Is 0