0 countercyclical activities do not follow the pattern which is normal in business or the economy:
1 countercyclical actions are aimed at helping the economy when it is experiencing difficulties:
The industry will be a key beneficiary of the Obama administration's counter-cyclical spending package.
In fact, under preference shocks, the model's only success is its ability to generate a countercyclical inventory-to-sales ratio.
A negative shock induces a drop of output which, however, can be counteracted by countercyclical monetary and fiscal policies.
This clearly shows that the countercyclical stock-price movement is related to the presence of the constraint.
The procyclicality of the price elasticity of demand is the basic element driving the result that in equilibrium markups are countercyclical.
In other words, the expected returns are countercyclical.
The countercyclical stock-price movements also are found to increase as agents become more risk averse.
On the other hand, public employment could also be construed as countercyclical spending.
Therefore, in world 2, the exit effect also tends to make v countercyclical.
