ECON 2400 Lecture Notes - Lecture 26: Procyclical And Countercyclical, Scatter Plot, Phillips Curve
20 Apr 2017
School
Department
Course
Professor
Document Summary
In the data set we examined here, the price level is a countercyclical variable (there is a reverse phillips curve), it is coincident, and it is less variable than. Gdp: the money supply is procyclical, leading, and about as variable as real gdp. The fact that the money supply tends to lead real gdp was assigned much importance by milton friedman. In the labor market, employment is procyclical, lagging, and less variable than real gdp: the real wage, too, is procyclical, there is, however, no consensus among macroeconomists on whether the real wage is a leading or lagging variable. Fluctuations about trend in real gdp: peak. A relatively large positive deviation from trend in real gdp: trough. A relatively large negative deviation from trend in real gdp: turning points. Peaks and troughs in real gdp: amplitude. The maximum deviation from trend in an economic time series: frequency. Gdp: leading, and about as variable as real gdp.
