GROSS DOMESTIC PRODUCT (GDP)
CONSUMER PRICE INDEX (CPI)
UNEMPLOYMENT RATE
Answer the following for each:
DESCRIPTION
WHAT IT TELLS ABOUT THE ECONOMY
GROSS DOMESTIC PRODUCT (GDP):
- Description: GDP measures the total value of all goods and services produced within a country's borders in a specific period of time.
- What it tells about the economy: GDP tells us how well an economy is performing and growing. A higher GDP indicates a healthier economy with increased production and consumption, while a lower GDP may indicate a slowing economy.
CONSUMER PRICE INDEX (CPI):
- Description: CPI measures changes in the prices paid by consumers for a basket of goods and services over time.
- What it tells about the economy: CPI helps gauge inflation or deflation in an economy. A higher CPI indicates rising prices and inflation, while a lower CPI may indicate deflation. It is an important measure for tracking purchasing power and cost of living.
UNEMPLOYMENT RATE:
- Description: Unemployment rate measures the percentage of the labor force that is not currently employed but actively seeking employment.
- What it tells about the economy: The unemployment rate provides insights into the health of the job market. A lower unemployment rate generally indicates a strong economy with job growth, while a higher unemployment rate may indicate economic weakness and lack of job opportunities.