Give two examples of economic indicators, each of a different type (leading, coincident, or lagging). Explain what type of economic indicator it is and how it is used to analyze economic activity.
What will be an ideal response?
Answers to this question will vary. Students should present two different economic
indicators and correctly identify the type, such as the S&P 500 index as a leading
economic indicator and the Consumer Price Index (CPI) as a lagging economic
indicator. Students should explain how each one works. For example, the S&P 500
index often turns downward before a recession and usually begins to improve before
the economy recovers from a slump. The Consumer Price Index (CPI) could be used to
confirm the beginning or end of a recession by showing deflation or an increase in the rate of inflation.
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Separate standards refers to
A) the elimination of tariffs and quotas by trading partners. B) common product safety, environment, labor, and fair competition standards agreed upon by trading partners. C) the acceptance or keeping of a trading partner's standards as valid and sufficient by another trading partner. D) separate standards held by different trading partners which other partners refuse to recognize.
In the case of negative externalities, _____
a. the market equilibrium output is greater than the socially optimal output b. the market equilibrium output is lesser than the socially optimal output c. the social cost curve lies below the private cost curve d. the market is allocatively efficient at market equilibrium
If we compare the trend in median wage for people with no more than a high-school education to that of people with a bachelor's degree, which of the following best describes median wage trend in the U.S?
a. The median inflation-adjusted wages for people with only a high school education have declined by about 6 percent since 1980, while the median wage of college graduates has risen by 12 percent in the same time period. b. The median inflation-adjusted wages for college graduates has declined by approximately 25 percent since 1980, while the median wage for people with only a high-school education has remained constant. c. The median inflation-adjusted wages for college graduates has increased by approximately 150 percent since 1980, while the median wage for people with only a high-school education has increased by only 31 percent. d. The median inflation-adjusted wages for college graduates has remained constant since 1980, while the median wage for people with only a high-school education has increased by 150 percent.
A country's government runs a budget deficit when which of the following occurs in a given year?
A) The amount of new loans to developing nations exceeds the amount of loans paid off by developing nations B) Government spending exceeds tax revenue C) The debt owed to foreigners exceeds the debt owed to the country's citizens D) The amount borrow exceeds the interest payment on the national debt E) Interest payments on the national debt exceed spending on goods and services