Economic Indicators

Question 1

Outline what is meant by an economic indicator

Answer 1

An economic indicator is something that can be used to measure levels of economic activity

Question 2

Describe how economic indicators are used by different sectors of the economy

Answer 2

Economic growth is measured by the total production of goods and services. The unemployment trend is the percentage of people in the labour force who are unemployed. Inflation rates are when price rises and the unit of currency buys less goods and services. Sustainability indexes are stock market indices that evaluate the sustainability performance of companies

Question 3

Discuss how GDP is used as a measure of economic performance

Answer 3

GDP is used as the measure of total production of goods and services