SIE practice questionmediumEconomic Indicators
Which economic indicator is considered a lagging indicator?
- AUnemployment rate✓ Correct answer
- BStock market performance
- CBuilding permits
- DNew orders for consumer goods
Explanation
Why A — Unemployment rate
Unemployment rate is a lagging indicator, reflecting past economic activity. Stock markets (B) and building permits (C) are leading indicators, while new orders (D) are coincident/leading.
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