Which of the following is a Lagging Economic Indicator? A)change in average labor costs in manufacturing B)M₂ measure of the money supply C)industrial production D)None of the above

Question

Quizplus · Accepted Answer

A change in average labor costs in manufacturing is a lagging economic indicator because it reflects changes in the overall economy after they have already occurred. This is because labor costs are typically set by contracts or negotiations that occur after changes in the economy have already taken place. B and C are not lagging economic indicators, with M₂ measure of the money supply being a leading indicator and industrial production being a coincident indicator.

Which of the Following Is a Lagging Economic Indicator