Which of the following is a leading business cycle indicator?
A) the unemployment rate
B) the volume of outstanding commercial loans
C) new building permits
D) personal income

Question

Quizplus · Accepted Answer

New building permits are a leading business cycle indicator because they show the level of investment and confidence in the economy. When more building permits are issued, it indicates that businesses and individuals are planning for future growth and expansion, which is a positive sign for the economy. The other options listed are lagging indicators that reflect past economic performance rather than predicting future trends.

Which of the Following Is a Leading Business Cycle Indicator