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.