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Chapter 5 questions

For Chapter 5 Unit questions Click Price-output determination under different market forms
QUESTION
Q20) Which of the following is not an example of coincident indicator?

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Correct

Solution:
(d) New orders for plant and equipment is actually an example of a leading indicator, not a coincident indicator.

Leading indicators are economic indicators that tend to change direction before the overall economy does, providing information on possible changes in economic activity in the future.
New orders for plant and equipment can be used as a leading indicator because businesses tend to place orders for new equipment and machinery in anticipation of future demand for their products or services.
Correct option is (d)