Employment tends to be
A) procyclical and less variable than real GDP.
B) procyclical and more variable than real GDP.
C) countercyclical and less variable than real GDP.
D) countercyclical and more variable than real GDP.

Question

Quizplus · Accepted Answer

Employment is procyclical, meaning it tends to increase during economic expansions and decrease during recessions, and it is generally less variable than real GDP because employment adjustments often lag behind changes in GDP.

Employment Tends to Be