Problem
1. What are business cycles? What are the four parts of a business cycle?
2. Distinguish between procyclical and countercyclical economic variables.
3. Distinguish between leading, lagging, and coincident economic variables.
4. Classify the following economic variables as procyclical or countercyclical and as leading, lagging, or coincident variables: real consumer spending, real investment spending, unemployment, inflation, S&P 500 Index, spread between long- and short-term interest rates on U.S. government bonds, and spread between interest rates on corporate bonds and government bonds.
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.