Unemployment is a:
A. lagging indicator, because the business cycle follows it.
B. lagging indicator, because it follows the business cycle.
C. leading indicator, because the business cycle follows it.
D. leading indicator, because it follows the business cycle.
Answer: B
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Which of the following pair of terms is similar?
A) Overhead and direct cost. B) Direct cost and fixed cost. C) Overhead and fixed cost. D) Overhead and variable cost.
In general, developed countries depend more heavily on indirect taxes on goods and services than do developing countries
a. True b. False Indicate whether the statement is true or false
To differentiate between nominal GDP and real GDP in the year 2000 we need to know all except
a. the quantity of goods produced in 2000 b. the price level in 2000 c. the quantity of goods and services produced in the base year d. the quantity of services produced in 2000 e. the price level in the base year
According to the Coase theorem, private markets will solve externality problems and allocate resources efficiently as long as
a. the externalities that are present are positive, not negative. b. government assigns property rights to the harmed party. c. private parties can bargain with sufficiently low transaction costs. d. businesses determine an appropriate level of production.