Question

Match the economic indicator with its type of measurement.

Answer 1

Retail sales are an economic indicator of activity. Retail sales reflect how much goods are being sold. Whenever a company is selling goods, retail sales would allow the company to evaluate is economic activity.

Gross Domestic Product is an economic indicator of growth. GDP is the value of all the goods and services that are produced in a country. Whenever more goods and services are produced in an economy, GDP allows analysts to say that the country has experienced economic growth. The richest countries have the highest GDPs.

Consumer Price Index is an economic indicator of inflation. CPI is a weighted average of prices of a basket of consumer goods and services. The CPI is used to measure inflation, $(CIP x_{1}- CPIx)/ CPIx = inflation$, x1 is the present year, and x is last year.

Unemployment rate is an economic indicator of inactivity. Unemployment rate shows the undesired unemployment in an economy. In other words, this rate shows economic individuals that are only contributing to the economy by consuming, but are not productive.

Answer 2

Let's match these up!

Answer

A. Growth

B. Activity

C. Inflation

D. Inactivity

Summary

A. Retail Sales growth.

B. Gross domestic product activity.

C. Consumer price index inflation.

D. Unemployment rate inactivity.