Question 4:

Read Sections 1 and 2 of the following paper the PDF copy of which is available in the same folder as this assignment: D'Amuru, F.D. and J. Macucci (2017), "The Predictive Power of Google Searches in Forecasting US Unemployment," International Journal of Forecasting, 33, 801-816. Use this paper, in conjunction with the Lesson 1 PowerPoint slides, to answer the following questions.

1. Is Google Trends data cross-section or time series?
2. Why does Google Trends data lie between 0 and 100?
3. Suppose that a researcher conducts Google Trends analysis of unemployment in Canada using two keywords: "unemployment benefits" and "jobs". Suppose that the Google Trends Search Volume Index for "unemployment benefits" is 80 and that for "jobs" is 90 which keyword is more popular? Explain.
4. State one possible limitation of Google Trends data.