A Change in the Leading Economic Index Is Supposed to Reflect

question 130

Multiple Choice

A change in the Leading Economic Index is supposed to reflect

• A) how the economy behaved recently.
• B) how the economy is behaving.
• C) how the economy will behave in the near future.
• D) an average of how the economy has behaved over the most recent business cycle.

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Definitions:

Rental Rate

The cost associated with leasing a particular commodity, property, or piece of equipment per unit time.

Marginal Product

The extra production resulting from the increase of a particular input by one unit, assuming all other factors remain constant.

Output

The total amount of goods or services produced by a company, industry, or country within a specific period.

Isoquant

A graph that shows all the combinations of capital and labor that can be used to produce a given amount of output.