Economic Indicators: Relation to the Business Cycle / Economy
- Procyclical: This indicator is one that moves in the same direction as the economy. The GDP is an example.
- Countercyclical: This indicator is one that moves in the opposite direction as the economy. The unemployment rate gets larger as the economy gets worse so it is a countercyclical economic indicator.
- Acyclical: This indicator is one that has no relation to the health of the economy and is generally of little use. The number of home runs the Montreal Expos hit in a year generally has no relationship to the health of the economy, so we could say it is an acyclic economic indicator.
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