Diebold and Rudebusch Showed That the Composite Index of Leading

question 42

Multiple Choice

Diebold and Rudebusch showed that the composite index of leading indicators did not improve forecasts of industrial production because

• A)the index is not produced in a timely manner.
• B)the government manipulates the index so it never predicts a recession.
• C)the index is not designed for forecasting.
• D)data on the components of the index are revised.

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Definitions:

Role Construct Repertory

A psychological tool used to help individuals identify how they construe significant persons in their lives, revealing their personal construct systems.

Validity

The degree to which an idea, conclusion, or measurement is grounded in reality and probably reflects the actual state of affairs accurately.

Repertory Grid

A technique used in personal construct psychology to explore the ways in which individuals construe their experiences and people in their lives.

Constructs

Abstract concepts developed or constructed to understand or interpret the world.