Lesson Quiz 13 -I Economic Instability DIRECTIONS: Modified True/False In the blank ,Indicate whether the statement is true (I)or false (F). If false, edit the statement to make it a true statement. 1. An econometric model is used to describe how the economy is expected to perform in the near future. 2. A statistical series that normally turns down after the economy turns down or turns up after I the economy turns up Is a leading economic Indicator. 3. The depression scrip is an index of 30 representative stocks used to monitor price changes in the overall stock market. 4. A business cycle begins when the economy reaches a low and begins to climb out of a recession. __ 5. The bursting of the housing bubble in 2006-2007 negatively affected consumer buying power and was largely responsible for the Great Recession in 2008-2009.

Question

Lesson Quiz 13 -I Economic Instability DIRECTIONS: Modified True/False In the blank ,Indicate whether the statement is true (I)or false (F). If false, edit the statement to make it a true statement. 1. An econometric model is used to describe how the economy is expected to perform in the near future. 2. A statistical series that normally turns down after the economy turns down or turns up after I the economy turns up Is a leading economic Indicator. 3. The depression scrip is an index of 30 representative stocks used to monitor price changes in the overall stock market. 4. A business cycle begins when the economy reaches a low and begins to climb out of a recession. __ 5. The bursting of the housing bubble in 2006-2007 negatively affected consumer buying power and was largely responsible for the Great Recession in 2008-2009.

Answer 1

1. True2. False, Corrected Statement: A statistical series that normally turns down after the economy turns down or turns up after the economy turns up is a lagging economic indicator.3. False, Corrected Statement: The Dow Jones Industrial Average is an index of 30 representative stocks used to monitor price changes in the overall stock market.4. True5. True

Answer 2

## Step 1: The first statement is true. An econometric model is indeed used to describe how the economy is expected to perform in the near future.## Step 2: The second statement is false. The correct term for a statistical series that turns down after the economy turns down or turns up after the economy turns up is a lagging economic indicator, not a leading one.### Corrected Statement 2: A statistical series that normally turns down after the economy turns down or turns up after the economy turns up is a lagging economic indicator.## Step 3: The third statement is false. The term 'depression scrip' refers to the temporary currency issued by towns, counties, or cities during the Great Depression, not an index of stocks.### Corrected Statement 3: The Dow Jones Industrial Average is an index of 30 representative stocks used to monitor price changes in the overall stock market.## Step 4: The fourth statement is true. A business cycle does indeed begin when the economy reaches a low and begins to climb out of a recession.## Step 5: The fifth statement is true. The bursting of the housing bubble in 2006-2007 did indeed negatively affect consumer buying power and was largely responsible for the Great Recession in 2008-2009.

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