Economic Variables and Business Cycles: Classical vs. Keynesian Perspectives, Quizzes of Macroeconomics

Download Economic Variables and Business Cycles: Classical vs. Keynesian Perspectives and more Quizzes Macroeconomics in PDF only on Docsity! TERM 1 Classical Economists DEFINITION 1 View business cycles as representing the economy's best response to disturbances in production and spending TERM 2 Keynesian Economists DEFINITION 2 argue that because wages and prices adjust slowly, disturbances in production and spending may drive the economy away from its most desirable level of output and employment for long periods of time. TERM 3 Procyclical Variable DEFINITION 3 Moves in the same direction as aggregate economic activity TERM 4 Countercyclical Variable DEFINITION 4 Moves in the opposite direction to aggregate economic activity TERM 5 Acyclical Variable DEFINITION 5 Does not display a clear pattern over the business cycle TERM 6 Leading Variable DEFINITION 6 Turning points occur before those of the business cycle TERM 7 Coincident Variable DEFINITION 7 turning points occur around the same time as those of the business cycle TERM 8 Lagging Variable DEFINITION 8 turning points occur later than those of the business cycle TERM 9 Coincident and Procyclical Variable DEFINITION 9 What type(s) of variable(s) is PRODUCTION, CONSUMPTION, FIXED EXPENDITURES & IMPORT EXPENDITURES TERM 10 More DEFINITION 10 Industries that produce more durable goods or capital goods are _____ sensitive to the business cycle that the industries producing nondurable goods.