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Assessing the next reported drop in the indexes

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Question: The index of consumer expectations dropped much more sharply before the brief and mild 1980 recession than it did before the much more severe and prolonged 1981-2 recession. The same pattern also occurred for the ISM/NAPM index of manufacturing activity. What other factors accounted for this anomaly? How would you take these into account when assessing the next reported drop in these indexes?

Reference no: EM131737819

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