Why do you think the change in the index of labor cost per unit of output is a useful lagging indicator of the macroeconomy? A. Leading indicators1. Average weekly hours of production workers (manufacturing)2. Initial claims for unemployment insurance3. Manufacturers’ new orders (consumer goods and materials industries)4. Fraction of companies reporting slower deliveries5. New orders for nondefense capital goods6. New private housing units authorized by local building permits7. Yield curve slope: 10-year Treasury minus federal funds rate8. Stock prices, 500 common stocks9. Money supply (M2) growth rate10. Index of consumer expectationsB. Coincident indicators1. Employees on nonagricultural payrolls2. Personal income less transfer payments3. Industrial production4. Manufacturing and trade salesC. Lagging indicators1. Average duration of unemployment2. Ratio of trade inventories to sales3. Change in index of labor cost per unit of output4. Average prime rate charged by banks5. Commercial and industrial loans outstanding6. Ratio of consumer installment credit outstanding to personal income7. Change in consumer price index for servicesView Solution:
Why do you think the change in the index of

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