The variables in the index of leading indicators are included in the index because
A) they are good indicators of the current rate of inflation.
B) they generally lag behind turns in the business cycle.
C) of their tendency to lead (or predict) turns in the business cycle.
D) they are good indicators of the current state of the economy.

Question

Quizplus · Accepted Answer

The index of leading indicators includes variables that have a tendency to lead or predict turns in the business cycle. This means that they are indicators of future trends in the economy rather than current conditions.

The Variables in the Index of Leading Indicators Are Included