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.
While _____ indicators forecast economic fluctuation, _____ indicators...
Leading indicators occur before business cycles while lagging indicators occur after business cycles