A leading indicator of business cycle peaks is given by:
A)industrial production.
B)the average initial weekly claims for state unemployment insurance.
C)the average duration of unemployment.
D)the change in consumer price index for services.

Question

Quizplus · Accepted Answer

The average initial weekly claims for state unemployment insurance tends to rise before a business cycle peak, indicating that more people are being laid off and becoming unemployed. This is a leading indicator because it provides a signal of potential economic downturn before other indicators, such as industrial production or consumer price index, show significant changes. The average initial weekly claims for state unemployment insurance is a leading indicator of business cycle peaks as companies tend to lay off workers in response to declining demand, making this an early sign of economic downturn.

A Leading Indicator of Business Cycle Peaks Is Given By