To anticipate what the economy is going to do next the government will look at ?
Correct answer: D. Leading indicators
- A. Lagging indicators
- B. Flashing indicator
- C. Coincidental indicators
- D. Leading indicators
Explanation
Leading indicators change before the wider economy and therefore help predict its next movement. Lagging indicators confirm changes after they have occurred, while coincident indicators move at the same time.
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About Macroeconomics
The economy is studied as a whole through national income, gross domestic product, inflation, unemployment, economic growth and business cycles. Coverage includes aggregate demand and supply, consumption and investment, money and banking, fiscal and monetary policy, exchange rates and balance of payments, which distinguishes macroeconomics from the study of individual markets.
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