Which of the following macroeconomic variables is countercyclical?
A)real interest rates
B)unemployment
C)the money supply
D)consumption

Question

Quizplus · Accepted Answer

Unemployment is countercyclical, meaning it moves in the opposite direction of the business cycle. During economic recessions, unemployment tends to increase, while during periods of economic expansion, unemployment tends to decrease. Real interest rates, the money supply, and consumption can be procyclical, countercyclical, or acyclical depending on the specific economic conditions.

Which of the Following Macroeconomic Variables Is Countercyclical