Economic variables that generally turn down before a recession begins and turn back up before the recovery starts are called:
A)leading indicators.
B)coincident indicators.
C)lagging indicators.
D)none of the above.

Question

Quizplus · Accepted Answer

Leading indicators are economic variables that tend to change direction before the overall economy does. They are useful in predicting the direction of the economy and are closely watched by economists and investors. Examples of leading indicators include stock prices, consumer confidence, and building permits. Coincident indicators change at the same time as the overall economy, while lagging indicators change after the economy has already started to move in a certain direction.

Economic Variables That Generally Turn Down Before a Recession Begins