The stock price index and contracts and orders for nondefense capital goods are ________.
A) leading economic indicators
B) coincidental economic indicators
C) lagging economic indicators
D) leading and coincidental indicators, respectively

Question

Quizplus · Accepted Answer

Stock price index and contracts/orders for nondefense capital goods are considered leading economic indicators because they provide a glimpse into future economic activity. The stock price index reflects market expectations of future profitability of firms, while contracts and orders for capital goods reflect expected future investments by firms.

The Stock Price Index and Contracts and Orders for Nondefense