Explain the difference between a leading economic indicator and a ...

[Charlie]

Explain the difference between a leading economic indicator and a lagging economic indicator.

Question 2

Name two of the eleven components of the Index of Leading Economic Indicators.

Question 3

Which of the following is a seasonal factor that can affect an economic time series (such as the Consumer Price Index)?
 a. Climate
  b. Vacation practices
  c. Holidays
  d. All of the above

[SamMuagrove]

Answer to Question 1

A LEADING INDICATOR TENDS TO PRECEDE SIMILAR CHANGES IN THE ECONOMY; A LAGGING INDICATOR TENDS TO FOLLOW OR LAG BEHIND SIMILAR CHANGES IN THE ECONOMY.

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Answer to Question 2

ANY TWO OF THE FOLLOWING ARE OK: 1) AMOUNT OF PRODUCTION IN MANUFACTURING; 2) INITIAL UNEMPLOYMENT CLAIMS; 3) NEW ORDERS FOR GOODS/MATERIALS; 4) VENDOR PERFORMANCE; 5) CONTRACTS AND ORDERS FOR PLANTS AND EQUIPMENT; 6) NEW BUILDING PERMITS; 7) CHANGE IN MANUFACTURERS' UNFILLED ORDERS; CHANGE IN SENSITIVE MATERIALS PRICES; 9) INDEX OF STOCK PRICES; 10) MONEY SUPPLY; 11) INDEX OF CONSUMER EXPECTATIONS.

Answer to Question 3

D

[Charlie]

Thank you!

[SamMuagrove]

Always glad to help...