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economy. The business cycle is divided into the following phases: expansion or recovery, peak, contraction or recession, and trough. The indicators point to certain times in the business cycle. The leading indicators anticipate the direction in which the economy is headed. Coincident indicators offer information about the current condition of the economy. Lagging indicators occur months after a recession or expansion and help predict how long that particular phase will last (Fed 101, 2005). To assess the future of the economy and its impact on MPG construction, Team B weighed the forecasts of the Federal Reserve, the Congressional Budget Office, and the National Association of Realtors on GDP, inflation, unemployment, interest rates, and foreign exchange rates against hard currencies...
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