The two statistics one should track to understand the future direction of the economy are
A)interest rates and inflation.
B)interest rates and the gross domestic product.
C)the consumer confidence index and the index of leading economic indicators.
D)inflation and the index of leading economic indicators.

Question

Quizplus · Accepted Answer

The consumer confidence index is a measure of how optimistic consumers are about the economy and their own financial situation, and it has been found to be a leading indicator of economic activity. The index of leading economic indicators is a composite of several economic indicators, including stock prices, building permits, and new orders for consumer goods, that are considered to be predictive of future economic activity. By tracking these two statistics, one can get a sense of where the economy is headed in the near future. Interest rates and inflation are important factors too, but they may be more reactive to changes in the economy rather than predictive of future trends. The gross domestic product is a measure of the current state of the economy, but it may not provide as much insight into future direction as the other two options.

The Two Statistics One Should Track to Understand the Future