In the textbook,real gross domestic product (GDP)is shown as:
A) a leading indicator of the business cycle.
B) a lagging indicator of the business cycle.
C) a coincident indicator of the business cycle.
D) unrelated to the business cycle.

Question

Quizplus · Accepted Answer

Real GDP is a coincident indicator of the business cycle, meaning it reflects the current state of economic activity and is often used to determine whether the economy is in expansion or contraction. It is not a leading indicator, which would indicate future trends, nor is it a lagging indicator, which would confirm trends that have already occurred.

In the Textbook,real Gross Domestic Product (GDP)is Shown As