Question

What happens to the Coincident Economic Index after a recession and when the economy starts to...

  1. What happens to the Coincident Economic Index after a recession and when the economy starts to expand?

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Answer #1

Coincident indicators occur in real time and clarify the state of the economy.this are analysed and used as they occur.these are key numbers that have a substantial impact on overall economy.like personal income.higher personal income numbers coincide with a stronger economy.lower personal income numbers means the economy is struggling.GDP is also a coincident indicator.The value of using coincident indicators stems from a nearly real time assessment of how the economy is performing.in recession salary have decreased that means companies are not much engaging in business and not affordable to pay higher salaries to attract skilled workers.when economy starts to expand then it pay higher salary to workers .

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