PRC-3 · Chapter 15 · Question 35 of 44
Certain economic statistics, like the number of new building permits issued, change direction before the broader economy does. These are used to forecast future phases and are known as:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: A) Leading indicators
Explanation
Leading indicators are metrics that typically shift before the rest of the economy, providing advance warning of upcoming business cycle changes.
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