Lagging variables are aggregate economic variables that
A)reach a peak after leading variables but before coincident variables reach a peak.
B)reach a peak after coincident variables reach a peak.
C)reach a peak two or more years after aggregate economic activity reaches a peak.
D)are insensitive to business cycles.

Question

Quizplus · Accepted Answer

Lagging variables are indicators that typically change after the economy as a whole does; thus, they reach their peak values after the coincident variables, which move in tandem with the overall economy, have reached theirs.

Lagging Variables Are Aggregate Economic Variables That