Question

Suppose there has been a decline in economic activity and you are usng the rules of...

Suppose there has been a decline in economic activity and you are usng the rules of thumb for identifying a recession to determine if it is likely that there is a recession. What modification would your instructor make to the rule of thumb for diffusion.

He would change it to if the diffusion index for employment over a 6-month span for all industries is declining and below 50% we are probably in or going to have a recession.

He would change it to if the diffusion index for employment over a 6-month span for all industries is declining and below 25% we are probably in or going to have a recession.

He would change it to if the diffusion index for employment over a 6-month span for all industries is declining and below 65% we are probably in or going to have a recession.

He would change it to if the diffusion index for industrial production over a 6-month span for all industries is declining and below 25% we are probably in or going to have a recession.

0 0
Add a comment Improve this question Transcribed image text
Answer #1

He would change it to if the diffusion index for employment over a 6-month span for all industries is declining and below 50% we are probably in or going to have a recession.

A diffusion index helps to tell us whether more stocks are declining or falling within an index. 6-month is usually a standard time to find out if there is going to be recession or not. Employment is a credible source to tell about the prospects of recession.

Add a comment
Know the answer?
Add Answer to:
Suppose there has been a decline in economic activity and you are usng the rules of...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • 4·Suppose that you are the economic advisor to a local gov- ernment that has to deal...

    4·Suppose that you are the economic advisor to a local gov- ernment that has to deal with a politically embarrassing sur- plus that was caused by a price floor that the government recently imposed. Your first suggestion is to get rid of the price floor, but the politicians don't want to do that. Instead, they present you with the following list of options that they hope will get rid of the surplus while keeping the price floor. Identify each one...

  • The Arlington Visiting Caregiver Clinic has been coasting under the longtime management team, since about 1992....

    The Arlington Visiting Caregiver Clinic has been coasting under the longtime management team, since about 1992. The clinic sells serves to homebound persons, including nurses’ aids, housekeepers, meal preparation and other similar services designed to assist the frail elders to stay in their homes. Performance is shown in the table. The clinic operates in a small city of 100,000 people, dominated by retail employment in small businesses that serve the surrounding rural communities. Two somewhat smaller providers serve the area,...

  • Ethics Challenge Ch3p133 Terri Ronsin had recently been transferred to the Home Security Systems Division of...

    Ethics Challenge Ch3p133 Terri Ronsin had recently been transferred to the Home Security Systems Division of National Home Products. Shortly after taking over her new position as divisional controller, she was asked to develop the division's predetermined overhead rate for the upcoming year. The accuracy of the rate is important because it is used throughout the year and any overapplied or underapplied overhead is closed out to Cost of Goods Sold at the end of the year. National Home Products...

  • Environmental scientists believe that there is a decline in the population of frogs around the wo...

    please answer all questions Environmental scientists believe that there is a decline in the population of frogs around the world. They speculate that declining frog populations are a symptom of deteriorating environmental conditions. How would these scientists gather accurate data about existing frog populations? How would they use these data to speculate on previous or future population levels? Imagine that a wetland you are studying has a population of 5000 frogs, including bullfrogs, spring peepers, and mink frogs. The populations...

  • Suppose Tom has a utility function U=C*L C= consumption L= hours of leisure Tom has 100...

    Suppose Tom has a utility function U=C*L C= consumption L= hours of leisure Tom has 100 hours to divide between work and leisure per week wage is $20/hr 1. Write down budget constraint in terms of consumption and hours of work 2.Tom make decisions on hours of work, leisure and consumption to max. utility. Explain why we can collapse this problem to one in which he chooses hours of leisure only 3. Find optimal hours of work and total consumption...

  • Gary G's is a small company that currently operates in Knoxville, TN and has a single...

    Gary G's is a small company that currently operates in Knoxville, TN and has a single product - stadium seat cushions bearing the University of Tennessee logo. Eventually Gary wants to expand and sell this product for other university and professional sports teams, and to add other merchandise. In the meantime, Gary is having a little difficulty understanding margins, and operating income and product mix. "I'll never understand this accounting stuff," Gary yelled, waving the income statement he had just...

  • Based on the Employment Situation Summary below, answer the following questions: 1. What month (and year)...

    Based on the Employment Situation Summary below, answer the following questions: 1. What month (and year) is summarized? What was the unemployment rate for that month? How does that rate compare with the rate in the previous month? 2. What were the unemployment rates for adult women, teenagers, blacks, hispanics, and whites? How did these rates compare with those a month earlier? 3. What factors make it difficult to determine the unemployment rate? 4. Why is unemployment an economic problem?...

  • Read the article below and explain why Krugman believes a recession is imminent. Either agree or...

    Read the article below and explain why Krugman believes a recession is imminent. Either agree or disagree with Krugman and explain why. Paul Krugman Warns an Imminent U.S Recession Nobel laureate Paul Krugman is possibly the world's most famous Keynesian economist thanks to his position on the New York Times editorial board. And he just joined the growing chorus of voices calling for a US recession in the next two years. The US economy is struggling for two reasons: The...

  • Terri Ronsin had recently been transferred to the Home Security Systems Division of National Home Products....

    Terri Ronsin had recently been transferred to the Home Security Systems Division of National Home Products. Shortly after taking over her new position as divisional controller, she was asked to develop the division’s predetermined overhead rate for the upcoming year. The accuracy of the rate is important because it is used throughout the year and any overapplied or underapplied over- head is closed out to Cost of Goods Sold at the end of the year. National Home Products uses direct...

  • Explain Autonomy (Task, Time, Team, and Technique) that you have at your present job. What would...

    Explain Autonomy (Task, Time, Team, and Technique) that you have at your present job. What would you change? Based on book, Drive by Daniel Pink (but don't need book to answer Q) - Read below or explanation and definitions " Pink argues that for a person to be motivated completely, he or she must have autonomy over four things in his or her work environment: Task, Time, Technique, and Team. without reinventing the wheel, allow me to explain (you should...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
Active Questions
ADVERTISEMENT