A set of economic variables whose fluctuations in value consistently precede similar fluctuations in other economic variables are called:
A) predictor variables.
B) leading indicators.
C) coincident indicators.
D) composite indicators.
E) lagging indicators.

Question

Quizplus · Accepted Answer

Leading indicators are used to predict future changes in the economy, as they fluctuate before other economic variables. Predictor variables, coincident indicators, composite indicators and lagging indicators do not necessarily precede changes in other variables.

A Set of Economic Variables Whose Fluctuations in Value Consistently