ECON 2HH3 Lecture Notes - Pearson Education, Business Cycle, Procyclical And Countercyclical
8 Mar 2014
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Outline: regularities in gdp fluctuations, comovement, the components of gdp, nominal variables, labour market variables, comovement summary. After studying this chapter, you will be able to. Explain the defining features of business cycles. Describe the nature of comovements among various macroeconomic time series. Regularities in gdp fluctuations: business cycles are fluctuations about trend in real gdp, key features of business cycles are: Frequency: figure 3. 1 illustrates these features. Regularities in gdp fluctuations (continued: figure 3. 2 shows business cycle fluctuations in real. 1961 2005: figure 3. 2 indicates that the deviations from trend in real gdp are: Quite choppy: figure 3. 2 also shows that the amplitude and frequency of fluctuations in real gdp are irregular. Comovement: comovement describes how aggregate economic variables move together over the business cycle, comovements between real gdp and another macroeconomic variable can be characterized as. Comovement (continued: a macroeconomic variable can be a.
