A decrease in the index of leading economic indicators would suggest that the economy will likely
A) realize demand-pull inflation
B) realize cost-push inflation
C) head into an expansion
D) head into a recession

Question

Quizplus · Accepted Answer

A decrease in the index of leading economic indicators is typically interpreted as a sign that the economy is slowing down, which could lead to a recession. These indicators are used to predict future economic activity, and a decline suggests that businesses and consumers are less confident about future economic conditions, potentially leading to decreased spending and investment.

A Decrease in the Index of Leading Economic Indicators Would