An example of a leading indicator is:

Question

Quizplus · Accepted Answer

Business confidence is a leading indicator because it provides insight into how businesses are feeling about future economic conditions. If businesses are confident, they are likely to invest and expand, which can lead to economic growth. On the other hand, if businesses are not confident, they may reduce investments and hiring, which can indicate economic slowdown. Tariffs and unemployment are lagging indicators, meaning they reflect past economic conditions. College enrollment can be a coincident indicator, meaning it reflects current economic conditions.

An Example of a Leading Indicator Is