The index of industrial production (IPt) is a monthly time series that measures the quantity of industrial commodities produced in a given month. This problem uses data on this index for the United States. All regressions are estimated over the sample period 1960:1 to 2000:12 (that is, January 1960 through December 2000). Let Yt = 1200 x In(PUIPt-1).

a. The forecaster states that Yt shows the monthly percentage change in IP,3 measured in percentage points per annum. Is this correct? Why?

Answer rating: 100% (QA)

a Yes the statement is correct The mo... View the full answer