CAF-7 · Chapter 1 · Question 5 of 15
Which of the following metrics is considered a classic example of a 'lagging economic indicator'?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) The national unemployment rate
Explanation
Lagging indicators change after the economy has already established a trend. The unemployment rate is a lagging indicator because employers usually wait until an economic downturn is confirmed before laying off staff.
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