Leading indicators tend to give longer warnings before peaks than troughs.

Question

Quizplus · Accepted Answer

This statement is true. Leading indicators such as stock market trends, consumer confidence, and business investments tend to give longer warnings before peaks than troughs. Peaks in the economy are often characterized by excesses, while troughs are marked by shortages or crises, which tend to occur more suddenly and unexpectedly. Therefore, indicators that signal upcoming peaks tend to show gradual changes over a longer period of time, while indicators that signal troughs tend to show more abrupt changes.

Leading Indicators Tend to Give Longer Warnings Before Peaks Than