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Read the statement below carefully, and decide whether it is true or false. And then EXPLAIN...

Read the statement below carefully, and decide whether it is true or false. And then EXPLAIN your answer (whether “true “ or “false”).

Business-cycle indicators are variables that always move up and down in tandem with (i.e., at roughly the same time as) real GDP.

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Answer #1

The given statement is True.

Reason - This is because when there's increase in the real GDP or output , tells that the businesses produced more or in expansion phase and when there is decrease in GDP which means output is low from businesses and therefore the business cycle in recession all in all. Hence the indicators are variables which move tandem with real GDP.

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