Measures of average workweeks and of supplier deliveries (vendor performance) are included in the index of leading indicators, because shorter workweeks tend to indicate ______ future economic activity and slower deliveries tend to indicate ______ future economic activity.
A) stronger; stronger
B) stronger; weaker
C) weaker; stronger
D) weaker; weaker

Question

Quizplus · Accepted Answer

Shorter workweeks tend to indicate weaker future economic activity because it suggests that companies may be cutting back on production and therefore reducing the amount of hours worked by their employees. Slower deliveries from suppliers also indicate weaker future economic activity because it suggests that demand for goods and services may be slowing down. Therefore, the best choice is C, where weaker workweeks and stronger vendor performance are both indicators of weaker future economic activity.

Measures of Average Workweeks and of Supplier Deliveries (Vendor Performance)