The index of leading economic indicators usually turns downward:
a. prior to economic expansions.
b. prior to economic contractions.
c. prior to a contraction, but then turns upward before the contraction begins.
d. a full 24 months before a recession begins.
Question 2
The index of leading economic indicators:
a. provide accurate information on the duration of downturns in the economy.
b. virtually always predicts downturns in the economy with a lead time of six months.
c. can result in a self-fulfilling prophecy if business firms respond to leading economic indicator predictions.
d. provide accurate information on the depth of downturns in the economy.
