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_____ indicators change before the economy itself changes.
- a)Lagging
- b)Coincident
- c)Leading
- d)concurrent
Correct answer is option 'C'. Can you explain this answer?
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_____ indicators change before the economy itself changes.a)Laggingb)C...
Explanation:
Business cycles are characterized by fluctuations in economic activity such as production, employment, income, and sales. Business cycle indicators are the economic indicators that can be used to determine the state of the economy.
There are mainly three types of business cycle indicators:
1. Leading indicators: These indicators change before the economy changes. They help to predict the future direction of the economy. Leading indicators include measures of consumer expectations, stock prices, and building permits.
2. Coincident indicators: These indicators change at the same time as the economy changes. They provide information about the current state of the economy. Coincident indicators include measures of employment, industrial production, and personal income.
3. Lagging indicators: These indicators change after the economy changes. They confirm the direction of the economy. Lagging indicators include measures of unemployment rates, business loans, and inventories.
Therefore, the correct option is C, leading indicators change before the economy itself changes.
Business cycles are characterized by fluctuations in economic activity such as production, employment, income, and sales. Business cycle indicators are the economic indicators that can be used to determine the state of the economy.
There are mainly three types of business cycle indicators:
1. Leading indicators: These indicators change before the economy changes. They help to predict the future direction of the economy. Leading indicators include measures of consumer expectations, stock prices, and building permits.
2. Coincident indicators: These indicators change at the same time as the economy changes. They provide information about the current state of the economy. Coincident indicators include measures of employment, industrial production, and personal income.
3. Lagging indicators: These indicators change after the economy changes. They confirm the direction of the economy. Lagging indicators include measures of unemployment rates, business loans, and inventories.
Therefore, the correct option is C, leading indicators change before the economy itself changes.
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_____ indicators change before the economy itself changes.a)Laggingb)C...
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_____ indicators change before the economy itself changes.a)Laggingb)Coincidentc)Leadingd)concurrentCorrect answer is option 'C'. Can you explain this answer?
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