What term refers to statistics that help economists judge the health of an economy?

• A. GDP
• B. Economic indicators
• C. Inflation
• D. Unemployment rate

Answer: (B)

Economic indicators are the statistics economists watch to judge how the economy is performing. They cover a range of measures that reflect output, prices, and the labor market, giving a picture of current health and clues about future direction. The reason this term works best is that it describes the broad set of data used to assess the economy, not any single metric. For example, GDP, inflation, and the unemployment rate are all economic indicators, but they are individual measures rather than the overall category. Using a mix of indicators—often categorized as leading, coincident, and lagging—helps economists get a fuller sense of economic health and likely trends.