A leading economic indicator of business cycle peaks is given by:

Question

Quizplus · Accepted Answer

An index of stock prices for 500 stocks is often used as a leading indicator of business cycle peaks because it reflects investors' expectations for future company profits and economic growth. As economic conditions improve, stock prices typically rise, but when a business cycle peak is nearing, stock prices may start to decline as investors anticipate a potential economic slowdown.

A Leading Economic Indicator of Business Cycle Peaks Is Given