By Direction
There are also three terms that describe an economic indicator's direction relative to the direction of the general economy:
- Procyclical indicators move in the same direction as the general economy: they increase when the economy is doing well; decrease when it is doing badly. Gross domestic product (GDP) is a procyclic indicator.
- Countercyclical indicators move in the opposite direction to the general economy. The unemployment rate is countercyclic: it rises when the economy is deteriorating.
- Acyclical indicators are those with little or no correlation to the business cycle: they may rise or fall when the general economy is doing well, and may rise or fall when it is not doing well.
Read more about this topic: Economic Indicator
Famous quotes containing the word direction:
“Exaggeration is in the course of things. Nature sends no creature, no man into the world, without adding a small excess of his proper quality. Given the planet, it is still necessary to add the impulse; so, to every creature nature added a little violence of direction in its proper path, a shove to put it on its way; in every instance, a slight generosity, a drop too much.”
—Ralph Waldo Emerson (1803–1882)
“As the unity of the modern world becomes increasingly a technological rather than a social affair, the techniques of the arts provide the most valuable means of insight into the real direction of our own collective purposes.”
—Marshall McLuhan (1911–1980)