Which of the following statements about leading economic indicators is true?
A)Most people refer to them before making any important spending decision.
B)They are the only economic indicators available to economists.
C)They indicate when an economy is in a recession or an expansion.
D)They foreshadow turning points in the business cycle.
E)They can predict precisely when turning points in an economy will occur.

Question

Quizplus · Accepted Answer

Leading economic indicators are used to forecast changes in the economy and are generally used by policymakers, businesses, and investors. They provide advance warning of changing business conditions and foreshadow turning points in the business cycle, such as the start of a recession or an expansion. However, they do not predict precisely when these turning points will occur.

Which of the Following Statements About Leading Economic Indicators Is