The reason unemployment claims are a good leading indicator of economic activity is that they reflect
A)Orders for new goods.
B)Hours worked per week.
C)Automatic stabilizers.
D)Industry layoffs and hiring.

Question

Quizplus · Accepted Answer

Unemployment claims indicate the number of individuals who are newly unemployed and filing for benefits, which reflects industry layoffs and hiring. This can provide insight into overall economic activity and potential trends. A sudden increase in unemployment claims suggests a weakening economy, while a decrease suggests growth. The other options are not directly related to unemployment claims.

The Reason Unemployment Claims Are a Good Leading Indicator of Economic