Leading indicators:
a. Are near perfect predictors of the future. It is for this reason that they are relied on so heavily by governments, central banks, and the private sector.
b. Have a mixed track record for predicting business cycles and should therefore be used cautiously. Nevertheless, they still might provide some useful insights.
c. Are designed to be used in theoretical research only and therefore do not provide any value added when analyzed for business purposes.
d. Give information about an economy's performance in the past and should consequently not be used for business decisions.
.B
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The table above gives the supply and demand schedules for scooters. Because of increased injuries sustained by children riding scooters, Citizens Against Scooter Accidents successfully lobbies the government to impose a price floor of $80
00 on scooters. a) What is the quantity demanded and supplied after the price floor has been imposed? b) Is there any shortage or surplus at this price floor? If so, how much? c) If the price floor is raised to $110.00, what is the quantity demanded and supplied? d) At a price floor of $110.00, is there any shortage or surplus? If so, how much?
Used alone, an expenditure-reducing policy that lowers aggregate demand
A) will not reduce the current account deficit. B) is likely to cause a recession. C) will be likely to increase the current account deficit. D) is likely to increase domestic inflation.