CA CPT Exam  >  CA CPT Questions  >  A variable that moves later than aggregate ec... Start Learning for Free
A variable that moves later than aggregate economic activity is called _____
  • a)
    a leading variable
  • b)
    a coincident variable
  • c)
    a lagging variable
  • d)
    a cyclical variable
Correct answer is option 'C'. Can you explain this answer?
Most Upvoted Answer
A variable that moves later than aggregate economic activity is called...
Lagging Variable in Aggregate Economic Activity

A lagging variable in aggregate economic activity is a variable that moves later than the overall economic activity. In other words, it is a variable that responds to changes in the economy after they have already occurred.

Examples of Lagging Variables

Some examples of lagging variables in aggregate economic activity include:

- Unemployment rate: Unemployment tends to rise after a recession has already begun, and may take longer to recover than other economic indicators.
- Consumer spending: Consumer spending may decrease as a result of a recession or economic downturn, but may take time to recover even after the economy has started to improve.
- Corporate profits: Corporate profits may be negatively impacted by a recession or economic downturn, and may not recover until well after the economy has started to improve.

Why Lagging Variables are Important

Although lagging variables may not be as useful in predicting economic trends as leading or coincident variables, they are still important to monitor. Some reasons why lagging variables are important include:

- They can provide confirmation of trends: By tracking lagging variables, economists can confirm whether a trend is actually occurring or if it is just a temporary blip.
- They can help identify turning points: Even though lagging variables do not necessarily predict turning points in the economy, they can help identify when a turning point has occurred.
- They can inform policy decisions: By monitoring lagging variables, policymakers can make informed decisions about how to respond to changes in the economy.
Free Test
Community Answer
A variable that moves later than aggregate economic activity is called...
This is because Lagging Indicators confirms the economic activity ie the activity is already happened. That's why it's written 'later'
Explore Courses for CA CPT exam
A variable that moves later than aggregate economic activity is called _____a)a leading variableb)a coincident variablec)a lagging variabled)a cyclical variableCorrect answer is option 'C'. Can you explain this answer?
Question Description
A variable that moves later than aggregate economic activity is called _____a)a leading variableb)a coincident variablec)a lagging variabled)a cyclical variableCorrect answer is option 'C'. Can you explain this answer? for CA CPT 2024 is part of CA CPT preparation. The Question and answers have been prepared according to the CA CPT exam syllabus. Information about A variable that moves later than aggregate economic activity is called _____a)a leading variableb)a coincident variablec)a lagging variabled)a cyclical variableCorrect answer is option 'C'. Can you explain this answer? covers all topics & solutions for CA CPT 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A variable that moves later than aggregate economic activity is called _____a)a leading variableb)a coincident variablec)a lagging variabled)a cyclical variableCorrect answer is option 'C'. Can you explain this answer?.
Solutions for A variable that moves later than aggregate economic activity is called _____a)a leading variableb)a coincident variablec)a lagging variabled)a cyclical variableCorrect answer is option 'C'. Can you explain this answer? in English & in Hindi are available as part of our courses for CA CPT. Download more important topics, notes, lectures and mock test series for CA CPT Exam by signing up for free.
Here you can find the meaning of A variable that moves later than aggregate economic activity is called _____a)a leading variableb)a coincident variablec)a lagging variabled)a cyclical variableCorrect answer is option 'C'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of A variable that moves later than aggregate economic activity is called _____a)a leading variableb)a coincident variablec)a lagging variabled)a cyclical variableCorrect answer is option 'C'. Can you explain this answer?, a detailed solution for A variable that moves later than aggregate economic activity is called _____a)a leading variableb)a coincident variablec)a lagging variabled)a cyclical variableCorrect answer is option 'C'. Can you explain this answer? has been provided alongside types of A variable that moves later than aggregate economic activity is called _____a)a leading variableb)a coincident variablec)a lagging variabled)a cyclical variableCorrect answer is option 'C'. Can you explain this answer? theory, EduRev gives you an ample number of questions to practice A variable that moves later than aggregate economic activity is called _____a)a leading variableb)a coincident variablec)a lagging variabled)a cyclical variableCorrect answer is option 'C'. Can you explain this answer? tests, examples and also practice CA CPT tests.
Explore Courses for CA CPT exam

Top Courses for CA CPT

Explore Courses
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
10M+ students study on EduRev