Question

Measures of average workweeks and of suppliers' deliveries (vendor performance) are included in the index of leading indicators, because shorter workweeks tend to indicate ______ future economic activity, and slower deliveries tend to indicate ______ future economic activity.

Answer 1

Weaker; Stronger

Step-by-step explanation:

Demand can affect output and employment in the short run, whereas supply is the ruling force in the long run in determining the difference between economic long run and short run.

The supplier deliveries index is a leading indicator and predictor of future growth or contraction. A rising supplier deliveries index over time usually signals future supply problems. A decreasing supplier deliveries index usually signals increased supply availability and possible decreased economic activity.