Average labour productivity tends to be a
A) lagging variable.
B) coincident variable.
C) leading variable.
D) an acyclical variable.
E) variable that is difficult to classify.

Question

Quizplus · Accepted Answer

Labour productivity is a coincident variable, meaning it moves in step with the business cycle and reflects overall economic activity in the present. It is not a leading variable as it does not necessarily predict future economic conditions, nor is it a lagging variable which tends to move after changes in the business cycle have occurred.

Average Labour Productivity Tends to Be a