National Activity Index is used for identifying recessions in the current time frame and was established by the federal reserve bank of chicago. Business Cycle Dating Committee is used to identify recessions with a considerable lag, making it less useful for designing policy.
a. National Activity Index does a good job identifying recessions in the current time frame.
b. Neither of them compiles financial statements of publicly traded companies.
c. National Activity Index is established by the federal reserve bank of chicago.
d. National Activity Index uses a weighted average of over 80 economic indicators to identify business cycle trends.
e. Business Cycle Dating Committee identifies recessions with a considerable lag, making it less useful for designing policy.
f. Business Cycle Dating Committee uses updated or revised information to determine phases of the business cycle.
So, these are the methods that is used during recession.
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