1. Data on home sales can be a good indicator of whether the economy will likely be in a recession soon. This kind of data is called a ___ economic indicator.
A. Coincident
B. Leading
C. Lagging
2. Similarly, data on payroll employment can be a good indicator of whether the economy is currently in a recession. This kind of data is called a ___ economic indicator.
A. Leading
B. Lagging
C. Coincident
Identify whether each of the following is a leading, coincident, or lagging indicator for a business cycle.
4. New building permits
5. Industrial production
6. Unemployment claims
7. Duration of unemployment
8. Consumer expectations
9. Consumer credit to person income ratio
10. Increases in new consumer goods offers to tend to indicate that consumer spending will rise shortly. This, in turn, means higher real GDP and higher industrial production. Therefore, increases in new consumer goods orders tend to be ____ by a ride in real GDP.
A. Preceded
B. Followed
C. Accompanied
10.2 In turn, a rise in real GDP tends to be ____by increases in industrial production.
A. Followed
B. Accompanied
C. Preceded
10.3 As industrial production increases, businesses will need more workers and will increase the number of new hires. Therefore, a rise in real GDP tends to be ____ by a decrease in the unemployment rate.
A. Followed
B. Preceded
C. Accompanied