Question

What are indicators that economists use to measure how an economy grows? Select all that apply.

Answer 1

Answer;

• measuring what the economy produces
• studying the economy of another country
• tracking how many workers have jobs

Explanation;

An economic indicator is a statistic about an economic activity. Economic indicators allow analysis of economic performance and predictions of future performance.

Economic indicators are key statistics that indicate the direction of an economy. While the indicators can be numerous, there are three broad categories of economic indicators: leading indicators, coincident indicators and lagging indicators.

Answer 2

Choices:
A) monitoring election results
B) measuring what the economy produces
C) monitoring the popularity of different music groups
D) studying the economy of another country
E) tracking how many workers have jobs
The best answers are: letters B, D and E.

Economic growth is defines as an increase in the capacity of an economy to produce goods and services, compared from one period of time to another. It can be measured in nominal terms, which include inflation, or in real terms, which are adjusted for inflation. For comparing one country's economic growth to another, GDP or GNP per capita should be used as these take into account population differences between countries.