Which of the Following Headlines Would Be More Closely Related

question 223

Multiple Choice

Which of the following headlines would be more closely related to what macroeconomists study than what microeconomists study?

• A)Avocado prices rise due to a late frost in California.
• B)The United Auto Workers sign a contract raising wages and benefits 7% over the next 3 years.
• C)Real GDP grows by 2.3% in the second quarter.
• D)Airlines raise ticket prices in response to rising fuel costs.

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Definitions:

Assets

Economic resources owned or controlled by an individual or entity, capable of producing value.

NAV

Net Asset Value, the total value of a fund's assets minus its liabilities, usually expressed per share.

Tail Event

An event or outcome that has a small probability of happening but can lead to significant impacts, often referred to in the context of financial risks.

Statistical Arbitrage

A quantitative trading strategy that seeks to exploit price discrepancies between related financial instruments by using complex statistical models and algorithms.