Economics Economic Indicators Questions
There are three main types of economic indicators: leading indicators, lagging indicators, and coincident indicators.
1. Leading indicators: These indicators provide information about the future direction of the economy. They are used to predict changes in economic activity before they occur. Examples of leading indicators include stock market performance, building permits, and consumer confidence surveys.
2. Lagging indicators: These indicators reflect changes in the economy after they have occurred. They are used to confirm trends and provide a clearer picture of the current state of the economy. Examples of lagging indicators include unemployment rate, inflation rate, and GDP growth rate.
3. Coincident indicators: These indicators move in line with the overall economy and provide a real-time snapshot of its current state. They are used to assess the current economic conditions. Examples of coincident indicators include industrial production, retail sales, and personal income.