business report

Assignment Tasks
Task 1: (7 marks)
A considerable body of academic research supports the argument that the slope of the yield curve (the spread between short term and long term interest rates) is a reliable predictor of future economic activity. Investors and policy makers have extensively used yield curves as a simple forecasting tool in real time to better understand business cycles
1.    Economists often use combined indicators to reconcile explanations for what happened to the economy in the past as well as reaffirming their prediction of economic outlook in the future.  Use the unemployment rate and building approvals indicators provided on CloudDeakin to justify the reliability of the yield slope as a leading indicator of the business cycle. (5 marks)