Statement I: The most widely used forecasting device is the index of leading indicators.
Statement II: The index of leading economic indicators usually turns downward as a recession approaches.

Question

Quizplus · Accepted Answer

Statement I is true as the index of leading indicators is widely used for forecasting economic trends. 
Statement II is also true as one of the functions of the index of leading economic indicators is to provide insights into the future direction of the economy. As such, it is often observed that the index turns downward before a recession, as it identifies factors that may lead to a slowdown in economic growth.

Statement I: the Most Widely Used Forecasting Device Is the Index