Signs that show the economy will change before it does (for example, a rise or fall in interest rates) are

Signs that show the economy will change before it does (for example, a rise or fall in interest rates) are

• A. Lagging indicators
• B. Leading indicators
• C. Laissez-faire
• D. Knowledge management

Answer: (B)

Leading indicators are signals that move before the economy as a whole changes, giving a forecast of where things are headed. Signs like interest rate shifts or expectations about monetary policy can foreshadow a broader economic turn, prompting early adjustments in hiring plans or budgeting. This is different from indicators that come later, which confirm trends after they've begun. The other terms don’t describe forward-looking economic signals: one is a policy approach, the other is a discipline for managing knowledge within an organization.

Leading indicators are signals that move before the economy as a whole changes, giving a forecast of where things are headed. Signs like interest rate shifts or expectations about monetary policy can foreshadow a broader economic turn, prompting early adjustments in hiring plans or budgeting. This is different from indicators that come later, which confirm trends after they've begun. The other terms don’t describe forward-looking economic signals: one is a policy approach, the other is a discipline for managing knowledge within an organization.