A variable that tends to move in advance of aggregate economic activity is called
A)a leading variable.
B)a coincident variable.
C)a lagging variable.
D)an acyclical variable.

Question

Quizplus · Accepted Answer

A leading variable tends to move in advance of the aggregate economic activity and signals the future movements in the economy. It includes variables such as new orders for consumer goods, building permits, stock prices, and money supply.

A Variable That Tends to Move in Advance of Aggregate