Question

Economists forecast future economic conditions by studying variables that tend to fluctuate in advance of the overall economy. The most significant of these variables are known as leading indicators, and they compose the index of leading economic indicators.

Which of the following variables are measured as part of this index? Check all that apply.

The interest rate spread

Consumer expectations

Stock prices

Hours worked by manufacturing workers

Technological advances

True or False: Short-run economic forecasts give the government useful information regarding expected tax revenues, but are not relevant to businesses because they cannot adjust output in the short run.

True

False