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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.

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.

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OlwenAdvanced · Tutor for 1 years

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1. True<br />2. 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.<br />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.<br />4. True<br />5. True

Explain

## Step 1: <br />The first statement is true. An econometric model is indeed used to describe how the economy is expected to perform in the near future.<br /><br />## Step 2: <br />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.<br /><br />### Corrected Statement 2: <br />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.<br /><br />## Step 3: <br />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.<br /><br />### Corrected Statement 3: <br />The Dow Jones Industrial Average is an index of 30 representative stocks used to monitor price changes in the overall stock market.<br /><br />## Step 4: <br />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.<br /><br />## Step 5: <br />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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