Question

1. Which of the following historical data can be thought as the best leading indicator of the economy?

		Inflation Rate
		Changes in the GDP
		Changes in Dow Jones
		Unemployment Rate

2. The data on daily stock prices of Exxon Mobil for the last one year is an example of which kind of historical information?

		time series data
		judgmental data
		cross sectional data
		panel data

Answer 1

1. The gross domestic product (GDP) is a comprehensive scorecard of the country’s economic health. As an aggregate measure of total economic production for a country, GDP represents the market value of all goods and services produced by the economy during the period measured, including personal consumption, government purchases, private inventories, paid-in construction costs and the foreign trade balance (exports are added, imports are subtracted).

The answer is b) changes in GDP

2. The data is spread over a time period and hence it is a time series data.

The answer is a) time series data