How do the different types of economic indicators measure a country's economic performance?

Economic indicators are statistical data that provide insights into the performance of a country's economy. They help in analyzing economic trends, assessing the overall health of the economy, and predicting its future performance. There are different types of economic indicators that measure different aspects of economic activity. Here are some of the most important types:

• Gross Domestic Product (GDP) measures the value of all goods and services produced within a country's borders. It is considered the most comprehensive measure of a country's economic performance.
• Inflation measures the rate at which prices of goods and services are increasing. High inflation can be an indication of an overheating economy, while low inflation can be a sign of a weak economy.
• Unemployment rate measures the percentage of the labor force that is unemployed. It is an important indicator of the health of the labor market.
• Consumer price index (CPI) measures the changes in the prices of a basket of goods and services commonly consumed by households. It is an important indicator of inflation.
• Interest rates measures the cost of borrowing money. High interest rates can indicate that the economy is growing too fast, while low interest rates can be a sign of a weak economy.

These indicators are often used in combination to provide a comprehensive picture of the economy. Analysts and policymakers use economic indicators to make informed decisions on issues such as monetary policy, fiscal policy, and trade policy.