2. Business Cycle

Question 1

What is an economic indicator def

Answer 1

An economic indicator is an economic variable that provides information into the health of an economy.

Question 2

Economic indicator examples

Answer 2

unemployment, consumer confidence rate, share prices, job advetisements,wages and retail sales

Question 3

What does economic indicator indicate

Answer 3

Suggest where potenitally economy is heading

Question 4

3 types of economic indicator

Answer 4

leading
coincident
lagging

Question 5

Leading indicator def

Answer 5

may help to forecast future economic activity. Leading economic indicators can be used to predict changes in the economy before the economy changes

Question 6

egs of leading indicators

Answer 6

Home building approvals, share prices, inventory held by firms, and business confidence.

Question 7

Leading indicator eg

Answer 7

measurable economic factor that changes before the economy starts to follow a particular pattern, used to predict future economic trends.

Question 8

coincident indicaotr def

Answer 8

indicators that change simultaneously with economic activity.

Question 9

egs of coincident indicators

Answer 9

GDP, retail sales, job advertisements, household income.

Question 10

Acc examples of lagging

Answer 10

Unemployment rate, wages, inflation rate, interest rates.

Question 10

Lagging indicator def

Answer 10

These indicators typically change after the economy has already begun to follow a particular trend,

Question 11

eg of lagging indicator

Answer 11

unemployment rate and , inflation rate

Question 12

Procylical indicator def w example

Answer 12

An economic indicator that moves in the same direction as the overall economy; it rises during economic expansions and falls during recessions, jobb advetisment

Question 13

Countercyclical indicato def w eg

Answer 13

economic indicator that moves in the opposite direction of the overall economy; it rises during recessions and falls during expansions. Eg unemployment