Identifying whether a measure is a leading or lagging indicator can be difficult, because a lagging indicator of one event can be a leading indicator of another.

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This statement is true. For example, unemployment rates may be a lagging indicator of an economic recession, but a leading indicator of potential changes in consumer spending. Therefore, it can be challenging to definitively classify certain measures as solely leading or lagging indicators.

Identifying Whether a Measure Is a Leading or Lagging Indicator