Many economic variables are classified according to their relation to the business cycle. What are the principal categories? Variables in which category(ies) are of greatest help in forecasting changes in the economy?
What will be an ideal response?
Economic variables may be procyclical, countercyclical, or acyclical. Cutting across the first two of these categories, a variable may be leading, lagging, or coincident. The best variables for forecasting are in the leading category, thus either procyclical or countercyclical.
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Use the data in the table below to answer the following question.PriceQuantity Demanded$201218171620142412301036840644448Over which price range is the demand inelastic?
A. $14-$12 B. $18-$16 C. $8-$6 D. $20-$18
(Long run) average cost curves are U-shaped when the production technology has decreasing returns to scale and the firm faces recurring fixed costs.
Answer the following statement true (T) or false (F)
A good or service or a resource is rival if
A) it is possible to prevent someone from enjoying its benefits. B) it is not possible to prevent someone from enjoying its benefits. C) its use by one person decreases the quantity available for someone else. D) its use by one person does not decrease the quantity available for someone else.
In the above figure, if a subsidy is granted to producers that generates an efficient allocation of resources, then producers will receive a total amount (price plus subsidy) equal to
A) $20 per unit. B) $15 per unit. C) $10 per unit. D) $5 per unit.