Exam 5: Economic Activity

Some of the major leading indicators would be:

Since late 2002, the Bush administration has followed a weak dollar policy, and

High interest rates in the United States relative to foreign interest rates have a tendency to attract foreign investors to the U.S. money markets.

Since the stock market is the most accurate and reliable of the ten leading indicators,

Various industries are so different that no common factors exist among them for purposes of analysis.

The National Bureau of Economic Research revised its definition of a recession in 2001 to read as follows: A recession is

Gross Domestic Product (GDP) measures only output from U.S. factories and consumption within the United States.

The Federal Open Market Committee (FOMC) determines the monetary policy for the U.S. economy.

Leading indicators change direction in advance of general business conditions and are of prime importance to investors who want to forecast rising profits and stock prices.

Of the predictors of economic patterns and stock market movements, the best is:

Which of the following are true statements?

Economic analysis is important for investors, because they need to anticipate

In the comparative international arena of real GDP growth rates, which country has had the highest growth in real GDP over the years 1993 to 2005?

The most positive long-term sign of economic growth is probably slow, steady, predictable growth in the money supply.

The primary tools used to stimulate economic activity are:

Some of the major lagging indicators would be:

Monetary policy can be implemented very quickly to reinforce fiscal policy, or, when necessary, to offset the effects of fiscal policy.

The difference between GNP and GDP is that GDP only measures output from U.S. factories and consumption in the U.S.

Subjective beliefs and judgments are usually eliminated from economic forecasts.

Some of the major coincident indicators would be: