Economics

Question 1

Define Recession

Answer 1

1. a mild consecutive six-month decline in stock prices, business activity, and employment.
2. two consecutive quarters of negative growth in GDP

Question 2

Define Recovery

Answer 2

an increase in the GDP for at least 2 consecutive calendar quarters

Question 3

Leading indicators

Answer 3

production worker’s average workweek
new housing starts
new business formation
money supply
vendor performance
new orders for durable goods (life of 3 or more years)
stock prices
contracts and orders for equipment
index of consumer expectations
unemployment claims
unfilled orders for durable goods

Question 4

Coincident Indicators

Answer 4

manufacturing
personal income
industrial production index
retail sales
GDP
non-farm payroll workers

Question 5

Lagging indicators

Answer 5

inventory
labor costs
existing housing sales
capital spending
outstanding commercial and industrial loans
unemployment rate
bank interest rates (Prime)
corporate profits