Which of the following is a lagging economic indicator?
A)Prices of common stock
B)Number of new businesses formed
C)The unemployment rate
D)New orders for plant and equipment
E)The money supply

Question

Quizplus · Accepted Answer

The unemployment rate is a lagging economic indicator because it reflects economic conditions that have already occurred. When the economy is improving, employers may still be cautious and may not begin hiring until they have seen sustained improvement. As a result, the unemployment rate may continue to rise in the short term even as the economy is improving.

Which of the Following Is a Lagging Economic Indicator