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Chapter 5 questions

For Chapter 5 Unit questions Click Price-output determination under different market forms
QUESTION
Q6) A variable that tends to move later than aggregate economic activity is called

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Correct

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Solution:
The correct answer is (c) a lagging variable. A lagging variable is a variable that tends to move later than the aggregate economic activity. These variables are often used as indicators of the direction of the economy in the near term, since they reflect the impact of changes in the economy that have already occurred. Examples of lagging variables include employment rates, consumer spending, and interest rates.
Correct option is (c)