CA Foundation P4 · Chapter 6 · Question 4 of 15
Industrial production, which moves at the same time as the overall economy, is an example of a:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: A) Coincident indicator
Explanation
Coincident indicators move simultaneously with the business cycle, giving information about the current state of the economy. Industrial production, GDP and retail sales are commonly cited examples.
More Business Cycles MCQs
- Q6According to Keynes, business cycles are caused mainly by:
- Q7The view that the trade cycle is 'a purely monetary phenomenon' caused by expansion and contraction of bank credit is associated with:
- Q8According to Schumpeter, business cycles are caused by:
- Q9The theory that business cycles result from waves of optimism and pessimism among businessmen is associated with:
- Q10The 'sunspot theory' of business cycles, which linked fluctuations in agricultural output to changes in sunspot activity, was put forward…