Capital MarketsQuestion 347 of 398
Which of the following is generally considered a leading economic indicator?
a.New building permits for housing
b.The unemployment rate
c.Corporate profits for the prior quarter
d.The average duration of unemployment
Explanation
Leading indicators, such as new building permits and stock prices, tend to change before the overall economy shifts, helping to forecast future activity. Lagging indicators, like the unemployment rate and average duration of unemployment, change after the economy has already turned.
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