Leading,coincident,and lagging indicators are based on the concept that:
A)expectations of future inflation is the driving force of the economy.
B)expectations of future profits are the driving force of the economy.
C)expectations of future unemployment is the driving force of the economy.
D)none of the above.

Question

Quizplus · Accepted Answer

Leading, coincident, and lagging indicators are based on the concept that expectations of future profits are the driving force of the economy. Leading indicators, such as stock market trends and consumer confidence, provide information about the direction of the economy in the near future. Coincident indicators, such as employment and retail sales, reflect the current state of the economy. Lagging indicators, such as inflation and GDP growth, confirm historical trends and provide information about the past performance of the economy. These indicators are used by economists and policymakers to make forecasts and assess the state of the economy.

Leading,coincident,and Lagging Indicators Are Based on the Concept That