Question

The Business Cycle Dating Committee and the National Activity Index are two methods used to monitor the phases of the business cycle and determine when a recession occurs. Decide which method each of the six items describes and place it in the correct category. If the item does not describe either, then place it in the neither category.
Business Cycle Dating Committee National Activity Index neither

Answer 1

Answer:

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Business Cycle Dating Committee and the National Activity Index are two methods used to monitor the phases of the business cycle established by the Federal Reserve Bank of Chicago.

National Activity Index: uses a weighted average of over 80 economic indicators to identity business cycle trends.

Business Cycle Dating: uses updated or revised information to determine phases of the business cycle .

Business Cycle Dating: identifies recessions with a considerable lag making it less useful for designing policy.

National Activity Index: does a good job in identifying recessions in the current time frame.

Neither Business Cycle Dating Committee nor the National Activity Index: compiles the financial statements of publicly traded companies.