It has been argued that the stock market predicts recessions. Using quarterly data since 1961, plot the
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It has been argued that the stock market predicts recessions. Using quarterly data since 1961, plot the real value of the stock market index (the Wilshire 5000 index in the last month of the quarter divided by the GDP deflator). Do you find the stock market to be a good economic forecaster?
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To assess whether the stock market index Wilshire 5000 is a good economic forecaster we can plot its ...View the full answer
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