Which of the following statements is true?
A)Leading indicators are frequently used to track cyclical fluctuations.
B)Leading indicators are frequently used to track seasonal fluctuations.
C)Lagging indicators are frequently used to track cyclical fluctuations.
D)Lagging indicators are frequently used to track seasonal fluctuations.

Question

Quizplus · Accepted Answer

Leading indicators are used to track the business cycle and are used as a predictor of future economic activity. Lagging indicators, on the other hand, are used to confirm changes in economic trends and are used as a reflection of past economic activity. Neither leading nor lagging indicators are typically used to track seasonal fluctuations.

Which of the Following Statements Is True