The average duration of unemployment and changes in the consumer price index for services are
A) leading economic indicators.
B) coincidental economic indicators.
C) lagging economic indicators.
D) composite economic indicators.

Question

Quizplus · Accepted Answer

The average duration of unemployment and changes in the consumer price index for services are considered lagging economic indicators. This is because they tend to change after the economy as a whole has already begun to follow a particular trend. For example, the average duration of unemployment typically increases after the economy has started to decline, as it takes time for the effects of an economic downturn to be reflected in unemployment figures. Similarly, changes in the consumer price index for services often lag behind changes in the overall economy, as it takes time for price changes to be felt by consumers.

The Average Duration of Unemployment and Changes in the Consumer