The Variables in the Index of Leading Indicators Are Included

Multiple Choice

The variables in the index of leading indicators are included in the index because

A) they turn down prior to a deflation and turn up prior to an inflation.
B) they generally lag behind turns in the business cycle.
C) they turn down prior to a recession and turn up before the beginning of a business expansion.
D) they provide a comprehensive measure of the current state of the economy.