The index of leading indicators was developed to provide more reliable information on
A) the expected future direction of the economy.
B) the future profitability of the leading companies in various industries.
C) where the economy has been in the recent past.
D) the extent to which the economy's existing plant and equipment capacity is being used.

Question

Quizplus · Accepted Answer

The index of leading indicators is designed to provide insights into the expected future direction of the economy. It achieves this by tracking a range of economic indicators, such as consumer expectations, stock prices, and building permits, that tend to change before the broader economy does. This allows policymakers, businesses, and other stakeholders to anticipate economic trends and adjust their strategies accordingly.

The Index of Leading Indicators Was Developed to Provide More