Leading economic indicators

Economists forecast future economicconditions by studying variables that tend to flutuate in advance of the overall economy. The most significant of these variables are known as leading indicators, and they compose the index of leading economic indicators.

Which of the following variables are measured as part of this index? Check all that apply.

A. New orders for consumer goods

B. Supplier deliveries

C. Consumer expectations

D. The ratio of elderly to non elderly workers

E. New building permits issued

True or False: Short-run economic forecasts affect the government's decisions regarding fiscal and monetary policy, as well as companies short- term planning decisions.

Suppose the most recent data show that the average initial weekly claims for unemployment insurance have recently decreased. This change suggests a recessionary or an expansionary period in the coming months.