Many macroeconomic variables
A)fluctuate together and by different amounts.
B)fluctuate together by the same amounts.
C)never fluctuate together.
D)fluctuate together about half of the time and by the same amount.

Question

Many macroeconomic variables
A)​fluctuate together and by different amounts.
B)​fluctuate together by the same amounts.
C)​never fluctuate together.
D)​fluctuate together about half of the time and by the same amount.

Quizplus · Accepted Answer

Macro variables such as GDP, inflation, unemployment rate, and interest rates tend to fluctuate together, but the magnitude of their fluctuations may differ. For example, GDP and employment tend to move in the same direction but the changes in employment may lag behind GDP growth or shrinkage. Similarly, inflation may change in response to changes in interest rates, but the extent of inflationary or deflationary pressure may vary depending on various factors affecting supply and demand in different sectors of the economy. Therefore, macro variables do not move in lockstep, but they are interrelated and influenced by a complex set of factors.

Many Macroeconomic Variables