Question: As the name suggests, a lagging indicator is an economic variable whose movements occur after movements in the overall economy. a. A number of employment

As the name suggests, a lagging indicator is an economic variable whose movements occur after movements in the overall economy.
a. A number of employment measures are lagging indicators. Consider the following variables:
(1) Increased use of temporary workers,
(2) Increases in new hires,
(3) A decline in the number of workers laid off, and
(4) An increase in overtime hours.
In an economic recovery from a recession, which of these variables would have the shortest and longest lags?
b. Top management of a company that produces luxury yachts has been waiting anxiously for the end of the recession and a resurgence in orders. Why might the company pay more attention to lagging indicators than to leading indicators? Explain.

Step by Step Solution

★★★★★

3.36 Rating (165 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

a As the economy improves we would expect firms to stop laying off workers then ... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Document Format (1 attachment)

235-B-E-M-E (1210).docx

120 KBs Word File

Students Have Also Explored These Related Economics Questions!

Why do you think economists pay more attention to unemployment data over a three-month period or more rather than a single month?

Which of these compounds would have a faster rate of SN2 reaction? a) b) c) d) e) CI CI Br or or Br or Br or or CI CI Br Br

Which of these compounds would have faster rate of SN1 reaction? a) b) c) d) e) CI ta Ph Ph -CI or Br or Br or or -Cl or + CH3 Ph -Cl Br Br ta -CI

SA-TIED YOUNG SCHOLARS PROGRAMME Young Scholars This paper was produced as a part of the SA-TIED Young Scholars' programme. The programme is a part of SATIED's capacity building initiatives, designed...

summarize the main idea of each article, discuss issues being highlighted briefly, give opinion pertaining the coverage of each article and provide recommendations for each issue in the article....

Part 1: Recent Economic and Financial Developments Monetary Policy Report submitted to the Congress on February 7, 2020, pursuant to section 2B of the Federal Reserve Act Domestic Developments The...

Please i need 8 slide power point presentation on this article please . Required: Question: Make 8 slide presentation of powerpoint Leading With Next-Generation Key Performance Indicators 4 Executive...

The total light beer sales in the United States is approximately three million gallons annually. With this large a market, breweries often need to know more about who is buying their product. The...

Determine whether the improper integral sec 0 do converge or diverge. 1- tan 0 Hence evaluate the integral.

4. Franklin Delano Roosevelt said that we have nothing to fear but fear itself. Th erefore, women have no reason to fear serial rapists. The following arguments are inductive. Determine whether each...

A factory generates compressed air from ambient 100 kPa, 17C by compression to 1000 kPa, 600 K, after which it cools in a constant-pressure cooler to 300 K by heat transfer to the ambient. Find the...

What are the advantages and disadvantages of divisionalization?

Northerley plc prepares accounts to 31 December each year and has operated a defined benefit pension scheme for many years. At 31 December 2016, the present value of the defined benefit obligation...

The ionization energies of the elements with atomic numbers 20 through 29 are very nearly equal. Why should this be so when considerable variations exist in the ionization energies of other...

A jet-engine thrust reverser to reduce an aircraft speed of 200 km/h after landing employs folding vanes which deflect the exhaust gases in the direction indicated. If the engine is consuming 50 kg...

The Information Technology Act consists of chapters. (i) 12 (iii) 14 (ii) 13 (iv) 15

Based on the information given, indicate whether the following industry is best characterized by the model of perfect competition, monopoly, monopolistic competition, or oligopoly. a. Industry A has...

1. The four-firm concentration ratios for industries X and Y are 89 percent and 62 percent, respectively, while the corresponding Herfindahl-Hirschman indexes are 2,600 and 1,200. The Dansby-Willig...

You work at a firm on Wall Street that specializes in mergers, and you are the team leader in charge of getting approval for a merger between two major beer manufacturers in the United States. While...

Income Statement For the Year Ended on December 3 1 \ table [ [ , J&H Corp.,Industry Average ] , [ Net sales,$ 1 5 , 0 0 0 , 0 0 0 , $ 1 8 , 7 5 0 , 0 0 0

a . Construct the current balance sheet for the firm using the projected sales figure. ( Do not round intermediate calculations and enter your answers in dollars, not millions of dollars, rounded to...

6. Estimate the value of the stock using two different models using your calculated estimates (you must provide the models used from text or used in class and show your calculations). 7. Estimate the...