Suppose the National Activity Index of the Federal Reserve Bank

question 275

Multiple Choice

Suppose the National Activity Index of the Federal Reserve Bank of Chicago drops to -0.83 this month after being above +0.36 for the previous three months. This movement in the index indicates that

• A) the economy has probably moved into a recession.
• B) the rate of economic growth has slowed, but not enough to suggest that a recession is imminent.
• C) the rate of economic growth has dropped below the historical trend rate of growth, and the economy has reached a trough.
• D) the economy is at its peak this month but will move into the recession stage in the near future.

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Definitions:

Test Bias

A characteristic of a test that produces different outcomes for different groups not directly related to the individual's abilities or knowledge.

Immigrant Children

Immigrant children refer to minors who have relocated to a new country with their families, facing unique challenges in adaptation, education, and cultural integration.

Reliability

The degree to which an assessment tool produces stable and consistent results over multiple administrations.

Predictive Validity

The extent to which a score on a scale or test forecasts or correlates with a future behavior, outcome, or criterion.