Economic forecasters use which of the following leading economic indicators:
i. term structure of interest rates
ii. new claims for unemployment insurance
iii. price of tea in China
A) i only
B) ii only
C) ii and iii
D) i and ii
E) i and iii

Question

Quizplus · Accepted Answer

Economic forecasters use leading indicators to predict future economic trends. The term structure of interest rates is a leading indicator that can signal a recession or economic growth. New claims for unemployment insurance is also a reliable indicator that can signal a downturn in the economy. On the other hand, the price of tea in China is not related to the U.S. economy and is not a reliable leading indicator. Therefore, the correct choice is D - i and ii.

Economic Forecasters Use Which of the Following Leading Economic Indicators