Capital MarketsQuestion 348 of 398
The unemployment rate is generally classified as which type of economic indicator?
a.A leading indicator
b.A lagging indicator
c.A coincident indicator that always turns first
d.Not an economic indicator at all
Explanation
The unemployment rate is a lagging indicator, meaning it typically changes after the broader economy has already begun to shift direction. Employers often wait to hire or lay off workers until an economic trend is well established.
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