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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In order to obtain the data used to calculate the unemployment rate, the Bureau of Labor Statistics
A) adds the number of people collecting unemployment insurance from each state. B) adds the state unemployment claims reports. C) uses a survey from 60,000 households. D) adds together all the reports of layoffs from businesses. E) uses a survey from 160,000 firms.
If the owner of a local movie theater wanted to increase the theater's total revenue from movie admissions, what should the owner do with ticket prices?
What will be an ideal response?