The recession of 2001 began in and ended in a march

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18. The recession of 2001 began in _____ and ended in _____. (a) March; November (b) February; December (c) April; October (d) February; October Answer: A Level of difficulty: 1 Section: 8.2
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122 Abel/Bernanke • Macroeconomics, Fifth Edition 19. According to research by Stock and Watson, the recent decline in volatility in many macroeconomic variables was a 20. Stock and Watson found that monetary policy was responsible for about _____ % of the reduction in output volatility that occurred in the mid-1980s. 21. An economic variable that moves in the same direction as aggregate economic activity (up in expansions, down in contractions) is called 22. An economic variable that moves in the opposite direction as aggregate economic activity (down in expansions, up in contractions) is called (a) procyclical. (b) countercyclical. (c) acyclical. (d) a leading variable. Answer: B Level of difficulty: 1 Section: 8.3 23. An economic variable that doesn’t move in a consistent pattern with aggregate economic activity is called
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Chapter 8 Business Cycles 123 24. A variable that tends to move in advance of aggregate economic activity is called 25. A variable that tends to move at the same time as aggregate economic activity is called 26. A variable that tends to move later than aggregate economic activity is called (a) a leading variable. (b) a coincident variable. (c) a lagging variable. (d) an acyclical variable. Answer: C Level of difficulty: 1 Section: 8.3 27. Diebold and Rudebusch showed that the composite index of leading indicators did not improve forecasts of industrial production because
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