Macroeconomists Study

question 73

Multiple Choice

Macroeconomists study

• A)changes in unemployment levels.
• B)changes in the price of gasoline used by a trucking business.
• C)the effects of a tax on beer.
• D)the effects of energy price increases on steel makers.

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Definitions:

Passive Portfolio

An investment strategy that seeks to replicate and hold a market index or benchmarks, typically requiring less frequent trading and lower fees.

Market Timing

Asset allocation in which the investment in the market is increased if one forecasts that the market will outperform T-bills.

Alpha Forecasts

Estimates or predictions of the active return on an investment, indicating how a security or portfolio is expected to perform relative to a benchmark index.

Forecast Imprecision

The degree of uncertainty or potential error in predicting future values or outcomes, often associated with economic, financial, or statistical forecasts.