Answer:
The correct answer is Outstanding commercial loans.
The Index of Lagging Economic Indicators is a composite index of seven economic indicators that tend to change after the economy has turned down. The seven indicators are:
Average duration of unemployment
Ratio of labor cost to output
Inventory to sales ratio
Average prime rate
Commercial and industrial loans
Consumer installment credit to personal income
Change in consumer price index for services
Outstanding commercial loans is not a lagging economic indicator because it tends to change before the economy has turned down. For example, when the economy is doing well, businesses tend to borrow more money to expand their operations. This leads to an increase in outstanding commercial loans. However, when the economy starts to turn down, businesses start to repay their loans. This leads to a decrease in outstanding commercial loans.
Therefore, outstanding commercial loans is not a lagging economic indicator because it tends to change before the economy has turned down.
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