Which of the following macroeconomic variables would you exclude from an index of leading economic indicators?
A) residential investment
B) employment
C) the money supply
D) stock prices

Question

Quizplus · Accepted Answer

Employment is typically considered a lagging indicator because it tends to change after the economy has already begun to follow a particular trend. Leading indicators, on the other hand, are used to predict future economic activity.

Which of the Following Macroeconomic Variables Would You Exclude from an Index