2. Leading economic indicators Economists forecast future economic conditions by

Question

2. Leading economic indicators Economists forecast future economic conditions by studying variables that tend to fluctuate in advance of the overall economy. The most significant of these variables are known as leading indicators, and they compose the index of leading economic indicators. Which of the following variables are measured as part of this index? Check all that apply. New building permits issued O Birth rates Government expenditures The interest rate spread New applications for unemployment insurance True or False: Businesses and government care only about long-run economic forecasts, because they cannot adapt policy or output to accommodate short-run fluctuations. O True False Suppose the most recent data show that the average initial weekly claims for unemployment insurance have recently increased. This change suggests period in the coming months.

Explanation / Answer

The correct answers are B,C and E.

This is False.

This represents a economic declining period in coming months.

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