What do economists mean by a "leading economic indicator"?
A) an indicator of future economic activity
B) an indicator that measures current economic activity
C) a highly accurate indicator that is easily measured
D) an indicator that is accurate most of the time

Question

What do economists mean by a "leading economic indicator"?  
A) an indicator of future economic activity 
B) an indicator that measures current economic activity 
C) a highly accurate indicator that is easily measured 
D) an indicator that is accurate most of the time

Quizplus · Accepted Answer

A leading economic indicator is an measure of economic activity that predicts or forecasts future changes in the economy. It is typically based on data that is released before other economic indicators, and is used by economists to anticipate future economic conditions. Examples of leading indicators include stock prices, consumer confidence surveys, and housing starts.

What Do Economists Mean by a "Leading Economic Indicator