Question

Question 10 1 points Save Answer Which of the following indicators is most appropriate to use in forcasting future economic activity? A. Laging economic indicators 3. Leading economie indicatos C. Coincident economic indicators D. All of the above E. None of the above

Answer 1

Option B.

• There are three main economic indicators which are used to forecast various economic event's or changes.
• They are :- leading indicators, lagging indicators and coincidence indicators.
• Leading indicators are those indicators which are usually used to forecast future economic activities.
• These indicators are usually used for business forecasting as it can help a firm in forecasting future sales.
• Lagging indicators are those indicators which reflect the historical economic trend's and changes.
• While coincidence indicators are those indicators which reflect current events and move in the same direction with the economy.