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Unemployment, the consumer price index and corporate profits are cited in the chapter as examples of which type of indicator?
ALeading indicators
BLagging indicators
CCoincident indicators
DTrend indicators
Answer & Solution
Correct answer: B. Lagging indicators
1. Lagging indicators change only after an economic trend has already occurred.
2. The chapter lists unemployment, corporate profits, labour cost per unit, interest rates, the consumer price index, and commercial lending as lagging indicators.
3. So the correct choice is the lagging indicators.
4. Leading indicators are ruled out: examples like building permits and new orders move in advance, not after.
_Source: ICAI BoS CA Foundation Paper 4 Business Economics, Ch 5 "Business Cycles", p.4_
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