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 the 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 the economy will occur.

Question

Quizplus · Accepted Answer

Leading economic indicators are designed to predict changes in the economy before they occur. They foreshadow turning points in the business cycle, indicating when the economy is likely to shift from a period of expansion to a period of contraction or vice versa. However, they cannot predict precisely when these turning points will occur, as economic events are subject to a wide range of variables and uncertainties.

Which of the Following Statements About Leading Economic Indicators Is