Which of the Following Statements About Leading Economic Indicators Is

question 139

Multiple Choice

Which of the following statements about leading economic indicators is true?

• A)Most people refer to them before making any important spending decision.
• B)They are the only economic indicators available to economists.
• C)They indicate when the economy is in a recession or an expansion.
• D)They foreshadow turning points in the business cycle.
• E)They can predict precisely when turning points in the economy will occur.

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Definitions:

Government Intervention

Actions taken by a government to affect the economy, which can include regulations, subsidies, tariffs, and direct provisioning of goods.

Maximin Strategy

In game theory, a strategy chosen to maximize the minimum gain that can be earned.

Equilibrium

A state where market supply and demand balance each other, and as a result, prices become stable.

Price-Leadership Model

A market situation where one dominant company sets the price of goods or services within an industry and other companies follow suit.