The Conference Board releases information about the economy on a periodic basis. Included are a number of different indicators. These indicators can be used to predict how the economy as a whole might change. Which of the following would be considered a leading indicator?
A) Stock prices as measured by a broad index such as the S&P 500.
B) Gross domestic product.
C) Corporate profits.
D) Industrial production.
Answer: A) Stock prices as measured by a broad index such as the S&P 500.