Question

The Keynesian model’s main implication for economic indicators is

a. Series that are measures of spending and series that have information about future spending are likely to be leading economic indicators.
b. Series that are measures of spending and series that have information about future spending are likely to be coincident economic indicators.
c. Series that are measures of spending and series that have information about future spending are likely to be lagging economic indicators.
d. Series that measure labor market conditions are likely to lead business cycle peaks, but lag troughs.

Answer 1

A

Step-by-step explanation:

A is the correct option that is Series that are measures of spending and series that have information about future spending are likely to be leading economic indicators.

Reason

Keynesian economics is an economic theory of total spending in the economy and its effects on output and inflation. Thus it must be a leading indicator.