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Lagging indicators change after the economy as a whole has begun a new trend, confirming shifts already underway. Average duration of unemployment is a classic lagging indicator—it lengthens after economic conditions deteriorate and improves only once recovery is well established. Option B (stock prices) is a leading indicator, often moving before economic changes. Option C (building permits) also leads economic activity because construction reacts early to interest rates and demand. Option D (initial jobless claims) is a leading indicator, reflecting layoffs ahead of broader trends. Series 65 candidates must differentiate between leading, coincident, and lagging indicators, as each has relevance in advising clients. Leading indicators help predict shifts; coincident indicators confirm current conditions; lagging indicators verify established trends. Understanding these categories helps advisers interpret economic data when forming investment strategies, timing asset allocation, and educating clients about business cycles.