Economic variables that generally turn down after a recession begins and turn back up after the recovery starts are called: A

Business Dec 23, 2020

Economic variables that generally turn down after a recession begins and turn back up after the recovery starts are called:

A. leading indicators.

B. coincident indicators.

C. lagging indicators.

D. none of the above.

Expert Solution

The answer is C).

Indicators are variables that tend to move in the same direction as the overall state of an economy, such as output. When variables turn down before a recession and turn up before an expansion, the indicators are called a leading indicators. If variables turn down after a recession and turn up after recovery, the indicators are called lagging indicators.

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