Exam 4: Economic Forecasting

Net Exports is the term denoting the value of newly produced U.S. goods and services purchased by foreigners exports) less the value of newly produced foreign goods purchased by the United States imports).

Factors which reflect movements in economic variables over time are:

Investment spending includes all purchases of capital goods, including buildings, and inventories by private businesses and nonprofit institutions, and purchases of new residential housing by individuals.

Investment spending includes all purchases of capital goods, including buildings, equipment and inventories by private businesses and nonprofit institutions, but excludes purchases of new residential housing by individuals.

All of the following are examples of seasonal factors EXCEPT:

Consumption spending refers to spending by individuals and nonprofit organizations on newly produced goods and services except for housing) and is frequently broken down into three categories: noninvestment goods, investment goods, and current consumption.

Variables whose current changes give an indication of future changes in other variables are called leading indicators.

The market value of the final goods and services produced in a Japanese owned and operated factory in the United States would be counted in the gross domestic product.

Cyclical factors are related to fluctuations in the general level of economic activity.

Econometric models have two types of equations - behavioral equations and identities.

Variables whose current changes give an indication of future changes in other variables are called coincident indicators.

Seasonal factors are concerned with a specific season of the year.

Government expenditures are expenditures for newly produced goods and services, including government invest expenditures, by all levels of government.

Gross domestic product for a country is the market value of all final goods and services produced within the country, regardless of the ownership of the productive factors, during some particular time period, usually one year.

The business cycle consists of four parts: peak, contraction, trough, and expansion.

Consumer spending on consumption goods which cannot be stored but must be consumed at the point of production are:

When using trend analysis, a forecaster might predict the dollar value of future sales by sketching a line that appears to "best fit" the historical data.

Investment spending includes all purchases of capital goods, including buildings, and inventories by private businesses and nonprofit institutions, as well as all money spent on stocks and bonds.

Gross national product for a country is the market value of all final goods and services produced with factors of production owned by the residents of a country, during some particular time period, usually one year.

Gross domestic product for a country is the market value of all goods and services, both intermediate and final, produced within the country, regardless of the ownership of the productive factors, during some particular time period, usually one year.