This second part of business cycles, reveals the patterns which are consistent over time.
It examines how variables such as Consumption (C), investement (I) etc. move alongside fluctuations in GDP.
Cyclicality with GDP - correlation betwen deviations from trend in GDP and deviations from trend in other variables
Variability with GDP - the extent to which business cycles exhibit greater or lesser amplitude than GDP
Timing with GDP - The timing of the business cycle deviations in other variables with respect to GDP, reveals whether the variables are leading or lagging ones.
Cyclicality (correlated deviations from trend)
Pro-cyclical: positive correlation with deviations from trend in GDP
Counter-cyclical: negative correlation with deviations from trend in GDP
A-cyclical: deviations from trend are uncorrelated with the deviations from trend in GDP
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