Question

Which of the following could be considered a leading indicator to predict changes in the real GDP? A. interest rates B. the stock market C. consumer behavior D. economist calculations which accurately predict business cycles

Answer 1

The correct option is D.
A leading indicator refers to an economic factors that is measurable and which changes before the economy begin to follow a particular pattern. Leading indicators are used by economists to predict changes in the economy of a nation and the government uses it to make necessary adjustment to the monetary policy.
Economists calculation which accurately predicts business cycle is an example of leading indicator that can predict changes in the real GDP.