Procyclical

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Procyclical is a term that describes a positive relation between the value of a good, service, or economic indicator and the overall state of the economy.[1] During the business cycle, goods and services can experience expansion or an increase in value as the economy grows, and show a decrease in growth and activity as the economy stagnates or shrinks.

Gross Domestic Product (GDP) is an example of a procyclic economic indicator.

[edit] See also

[edit] References

  1. ^ Procyclic Investopedia Retrieved on 27 December 2007
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