Question: 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

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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