A coincident indicator will change before a recession starts.

Question

Quizplus · Accepted Answer

A coincident indicator is a measure of the current state of the economy, such as employment rates or consumer spending. It does not predict future recessions and therefore does not change before a recession starts. It may decline or stagnate during a recession, but it is not a leading indicator. Leading indicators, such as stock prices or the yield curve, are more likely to change before a recession starts.

A Coincident Indicator Will Change Before a Recession Starts