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2. (5 points) Here are few industries and four forecasts for the macro economy. Choose the industry that that you would expect to perform best in each scenario. Industry: Grocery stores, Airlines, Housing construction, utilities, steel, grocery stores, automobiles, gold, food products Economic Forecasts: Deep recession: Falling inflation, falling interest rates, falling GDP Superheated economy: rapidly rising GDP, increasing inflation and interest rates Healthy expansion: rising GDP, mild inflation, low unemployment. Stagflation: falling GDP, high inflation
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