Economic Indicators & Role of Government Quiz

What are economic indicators?

• Measurements used to understand the health and direction of an economy
• Tools used to predict stock market performance
• Strategies for managing government spending
• The same as fiscal policy

Which type of economic indicator is used to predict changes in the economy?

• Leading
• Lagging
• Coincident
• All of the above

Which type of economic indicator provides confirmation of a pattern that the economy has already entered?

• Leading
• Lagging
• Coincident
• All of the above

Which type of economic indicator provides information about the current state of the economy?

• Leading
• Lagging
• Coincident
• All of the above

What is an example of a leading indicator?

• Stock market performance
• Unemployment rates
• Personal income
• Labor cost per unit of output

What is an example of a lagging indicator?

• Stock market performance
• Unemployment rates
• Personal income
• Building permits

What is an example of a coincident indicator?

• Stock market performance
• Unemployment rates
• Personal income
• Building permits

What role does the government play in the economy?

• It has no role
• It provides entertainment
• It maintains economic stability and growth
• It predicts stock market performance

What is fiscal policy?

• The process by which the government controls the supply of money
• The use of government revenue collection and expenditure to influence the economy
• The same as economic indicators
• A type of leading indicator

What might the government do in a recession as part of its fiscal policy?

• Increase taxes and cut spending
• Cut taxes and increase spending
• Maintain taxes and spending at current levels
• None of the above