Forecasting the future path of real GDP by exploiting past statistical relationships
A)can be accomplished by the construction and use of an index of coincident variables.
B)can be accomplished by the construction and use of an index of lagging variables.
C)can be accomplished by the construction and use of an index of leading variables.
D)can only be accomplished if there is a perfectly positive correlation.
E)is never very reliable.

Question

Quizplus · Accepted Answer

Forecasting the future path of real GDP can be accomplished by the construction and use of an index of leading variables, which are variables that tend to change direction ahead of the overall economy, providing information about future economic activity.

Forecasting the Future Path of Real GDP by Exploiting Past