Economics & AnalysisQuestion 8 of 110
Which of the following is a leading economic indicator?
a.The unemployment rate
b.Corporate profits reported for the prior quarter
c.The average duration of unemployment
d.New building permits issued for housing
Explanation
Leading indicators, such as new building permits and stock prices, tend to change before the broader economy does. The unemployment rate and average duration of unemployment are lagging indicators. Prior-quarter corporate profits reflect activity that has already occurred.
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