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While _____ indicators forecast economic fluctuation, _____ indicators confirm the trends.
  • a)
    lagging ; leading
  • b)
    lagging ; coincident
  • c)
    coincident ; leading
  • d)
    leading ; lagging
Correct answer is option 'D'. Can you explain this answer?
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While _____ indicators forecast economic fluctuation, _____ indicators...
Explanation:

Economic indicators are statistics that help economists and policymakers understand the current state of the economy and make predictions about future economic trends. There are three types of economic indicators:

1. Leading Indicators - These indicators are used to forecast future economic activity. These indicators change before the economy as a whole changes. They are considered to be predictive in nature. Examples of leading indicators include stock prices, building permits, and consumer expectations.

2. Lagging Indicators - These indicators change after the economy as a whole changes. They are considered to be confirmatory in nature. Examples of lagging indicators include unemployment, inflation, and GDP.

3. Coincident Indicators - These indicators change at the same time as the economy as a whole changes. They are considered to be a reflection of the current state of the economy. Examples of coincident indicators include retail sales and industrial production.

Answer:

The correct option is D, leading indicators forecast economic fluctuation, while lagging indicators confirm the trends.

- What are leading indicators?
Leading indicators are predictive in nature and help forecast future economic activity. They change before the economy as a whole changes. Examples of leading indicators include stock prices, building permits, and consumer expectations.

- What are lagging indicators?
Lagging indicators are confirmatory in nature and change after the economy as a whole changes. They confirm the trends. Examples of lagging indicators include unemployment, inflation, and GDP.

Therefore, leading indicators forecast economic fluctuation, while lagging indicators confirm the trends.
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Community Answer
While _____ indicators forecast economic fluctuation, _____ indicators...
Leading indicators occur before business cycles while lagging indicators occur after business cycles
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While _____ indicators forecast economic fluctuation, _____ indicators confirm the trends.a)lagging ; leadingb)lagging ; coincidentc)coincident ; leadingd)leading ; laggingCorrect answer is option 'D'. Can you explain this answer?
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