Question: Question 4 (1 point) Assume that you develop and advanced an algorithm that predicts very accurately supply and demand shocks under different growth and inflation

 Question 4 (1 point) Assume that you develop and advanced an

Question 4 (1 point) Assume that you develop and advanced an algorithm that predicts very accurately supply and demand shocks under different growth and inflation environments. According to your algorithm, the economy over the next quarter will be characterized by a low inflation regime and strong growth. Moreover, the algorithm is predicting a positive supply shock. What would be the most likely strategy that you will follow using that information: You take a short position on oil futures since its price will likely decrease You take a long position on oil futures since its price will likely increase You do nothing since there is no effect on oil prices from positive supply shocks under the given economic environment

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