Which economic indicators are used to measure the global economy? Check all that apply.

Which economic indicators are used to measure the global economy? Check all that apply.

a. purchasing power parity

b. trade volumes

c. spending power parity

d. labor market data

e. gross domestic product

f. trade deficits and surpluses

Answer: The correct options are a, b, d, e and f.

These global economic indicators are widely recommended for use when analyzing the international economy. Purchasing power parity relates to and compares the cost of living standards and respective inflation rates. Trade volumes involve measurement of sales of goods both to and from other countries which shows the growth of international business. Employment trends and wages that are depicted within a domestic economy are some of the strongest indicators of health within the labour markets. The gross domestic product or GDP refers to the total value of all the goods and services manufactured or provided in a specific country for a given time period and is usually used as an aggregate of economic activity. Trade deficits and surpluses detail the overall balance of imports and exports and show the trade relations of the country in question with the rest of the world.