A leading countercyclical variable A reaches a peak before t

A leading countercyclical variable_____> A. reaches a peak before the peak of the business cycle b. reaches a trough before the peak of the business cycle c. reaches a tough along with the trough of a business cycle D. all of the above e. none of the above

Solution

Countercyclical variables move in the opposite direction of the business cycle. They undergo boom when business cycle is experiencing trough and vice versa. Unemployment is a countercyclical variable.

OPTION B