Final answer:
Economic indicators are divided into leading, coincident, and lagging indicators, each serving a different purpose in predicting, reflecting, and confirming economic conditions, respectively. Social indicators measure development levels, while economic freedom indicators assess the market functionality related to individual freedoms.
Step-by-step explanation:
Types of Economic Indicators
When assessing actions that can change future performance and predict success in achieving strategic goals, we discuss specific types of economic indicators. These indicators are instrumental for economists and policymakers to gauge a country's economic health and developmental progress.Leading indicators, such as new orders for consumer durables, are predictive in nature. They hint at the future direction of the economy, allowing adjustments before market changes occur. Coincident indicators, like the gross domestic product, reflect the current state of economic activities. Finally, lagging indicators, including interest rates, are only observable after economic activities have occurred, showing the historical performance.
Social indicators, another important aspect, consider metrics such as literacy rate, life expectancy, and infant mortality rate to measure a nation's development level. These indicators provide insight into the overall well-being and progress of a population.
Economic freedom measurements rely on various indicators to determine whether they promote or inhibit a market's functionality. When the proper functioning of government in an economy is considered, some indicators show the degree to which there is freedom for individuals to engage in market activities without undue restriction.