Question

Place each item below in the appropriate category.

Note: Although more than one item may be misplaced, you will receive feedback on one misplaced item at a time.

Answer 1

The following indicators placed based the category they belong:

Leading economic indicators:

• The unemployment rate
• Average duration of unemployment
• The trade deficit
• Interest rate spread

Not leading economic indicators:

• Manufacturer's order for durable goods
• Building permit
• Housing starts

What is unemployment?

Unemployment can be defined as the situation in which a person who is able and willing to work do not find a suitable job at a period of time. Unemployment is one of the most important determinant of the economy because it constitute the factors used to determine production and growth of an economy.

Learn more about unemployment:

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