Economic indicators are economic statistics that tell us how well economy is doing. The GDP, unemployment rate, and inflation rate are the most common macroeconomic indicators. The GDP is the total value of all final goods and services produced in within a country in a given year. The change in the GDP tells us whether the economy is in an expansion or recession.
Since GDP is the measure of an economy's production, it is often used as an indicator of for standard of living. Consumption will equal production at an economy's equilibrium. Do you think the GDP is an adequate measure of standard of living? Why or why not? What are some alternative measures of economic well-being?