Can somebody explain me how leading, lagging and coincident indicators work. I went through reading several times, and still cannot distinguish the indicators.
Leading indicators change ahead of the business cycle; e.g., they’ll start to increase before a recovery begins and start to decrease before a downturn begins.
Coincident indicators change with the business cycle; e.g., they’ll start to increase as a recovery begins and start to decrease as a downturn begins.
Lagging indicators change after the business cycle; e.g., they’ll start to increase after a recovery begins and start to decrease after a downturn begins.
Remembering indicators in each category was a nightmare…
This is exactly what I’m struggling with. I can remember the differences, but specific examples, I just don’t understand.
I would probably move on to the more important stuff and come back to it 2-3 days before th exam and hope that your short term memory does not fail you lol. During my review, I went over them again but could not justify memorizing all of them perfectly. I picked the most important ones and just hoped that, if ever they appeared on the exam, they would test the ones I memorized.