Computer forecasting models are most accurate at predicting the economy when
a. inflation is accelerating.
b. there is a turn in the business cycle.
c. economic conditions are relatively stable.
d. supply shocks impact the economy.
C
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What does it mean that the Fed is the lender of last resort?
a. The Fed is the only institution that lends to banks. b. The Fed lends to banks before other institutions will loan money to them. c. The Fed lends to banks when no one else will loan money to them. d. The Fed ensures that other institutions will lend money to banks.
If a firm sells a total of 100 shares of stock, then
a. the supply of, and demand for, those shares determine the price per share. b. each share represents ownership of 1 percent of the firm. c. the firm is engaging in equity finance. d. All of the above are correct.
If the expected profitability of a business activity increased we might expect investment spending to:
A. remain constant. B. decrease. C. increase. D. there is not enough information to determine what would happen.
Suppose that 30% of a country’s population is institutionalized in schools, hospitals, or prisons; 10% are full-time homemakers; another 10% are retired; 45% of the population is employed either full-time or part-time; and 5% of the population is unemployed and seeking work. Then the unemployment rate is
a) 5% b) 10% c) 15% d) 25% e) 55%