Sunday, January 08, 2012

Macroeconomic Indicators -- Recession

Leslie Wolfson, an extraordinary AP Economics teacher, has complied an outstanding list of weird indicators that economists can use to determine which part of the business cycle the economy is in or will be in.  For example, an increase in prostitution, underwear sales, drinking at home, composition of the waitress industry and more signal the economy's movement from good times to bad.








This is supposed to be fun, but I think these are microeconomic indicators.  I would also be hesitant to conclude through induction that if hemlines are shorter then the economy is in recovery or headed to prosperity as this would be making the fallacy of composition.

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