CAF-7 · Chapter 1 · Question 4 of 15
An economic analyst is tracking 'new private house building permits' to predict the future direction of the country's economy. According to macroeconomic indicators, how is this metric classified?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) Leading indicator
Explanation
Leading indicators, such as new house building permits and stock market indices, change before the economy as a whole changes, making them useful for predicting future economic trends.
More PESTEL Analysis (I) - Political, Economic and Social MCQs
- Q6A central bank decides to significantly increase the base interest rate to combat rising inflation. What is the most likely immediate…
- Q7If the national currency of a country depreciates significantly against the US Dollar, what will be the primary effect on that country's…
- Q8A multinational firm intends to enter a new regional market. During its PESTEL analysis, the firm notes that the target country has a…
- Q9Which of the following best defines the 'Trough' stage of the economic cycle?
- Q10A life insurance company notices an increasing demand for pension planning products and retirement home financing. This trend is driven by…