Asked by Melissa Gonzalez on Jun 29, 2024
Verified
By a leading economic indicator,economists mean:
A) an indicator of future economic activity.
B) an indicator that reflects economic fluctuations as they occur.
C) a highly accurate indicator that is easily measured.
D) an indicator that predicts the level of inflation in an economy.
E) any variable that follows changes in economic activity.
Leading Economic Indicator
A statistic about economic activities that helps analysts and policymakers predict future economic trends and business cycles.
Economic Activity
The actions that involve the production, distribution, and consumption of goods and services within an economy.
- Understand the role of economic indicators, including leading, coincident, and lagging indicators, in forecasting economic activities.
Verified Answer
MG
Mireya GarciaJul 04, 2024
Final Answer :
A
Explanation :
A leading economic indicator is an indicator that predicts future economic activity. It is used by economists and policymakers to help forecast changes in the economy and make decisions accordingly. Examples of leading economic indicators include consumer confidence, stock market performance, and building permits.
Learning Objectives
- Understand the role of economic indicators, including leading, coincident, and lagging indicators, in forecasting economic activities.
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