Forecasting the future path of real GDP by exploiting past statistical relationships
A) is never very reliable.
B) can be accomplished by the construction and use of an index of leading variables.
C) can be accomplished by the construction and use of an index of lagging variables.
D) can be accomplished by the construction and use of an index of coincident variables.
E) can only be accomplished if there is a perfectly positive correlation.

Question

Quizplus · Accepted Answer

The construction and use of an index of leading variables is a common method for forecasting the future path of real GDP by exploiting past statistical relationships. While forecasting is never 100% reliable, using leading variables to predict changes in real GDP can provide useful insights into future economic trends.

Forecasting the Future Path of Real GDP by Exploiting Past