Editing Business cycle (section)

=== Cyclical behavior of exports and imports ===
[[Export]]s and [[import]]s are large components of an economy's [[aggregate expenditure]], especially one that is oriented toward [[international trade]]. Income is an essential determinant of the level of imported goods. A higher [[Gross domestic product|GDP]] reflects a higher level of spending on imported goods and services, and vice versa. Therefore, expenditure on imported goods and services falls during a [[recession]] and rises during an [[economic expansion]] or boom.<ref name="Acemoglu 2018">{{Cite book|last=Acemoglu|first=Daron|url=https://www.worldcat.org/oclc/956396690|title=Macroeconomics|date=2018|others=David I. Laibson, John A. List|isbn=978-0-13-449205-6|edition=Second|location=New York|oclc=956396690}}</ref>

Import expenditures are commonly considered to be procyclical and cyclical in nature, coincident with the business cycle.<ref name="Acemoglu 2018"/> Domestic export expenditures give a good indication of foreign business cycles as foreign import expenditures are coincident with the foreign business cycle.