Which indicators do economists use to determine the state of the economy? (Select all that apply.)

Which indicators do economists use to determine the state of the economy? (Select all that apply.)

a. prices

b. immigration levels

c. agricultural output

d. employment levels

e. gross domestic product (GDP)

Answer. The correct options are a, d and e.

Some of the main measurements that economists use to evaluate the condition of an economy include the following. Specifically, prices are known to depict costs such as the inflation rate that defines monetary status. Employment is an important measure which captures both the labour market conditions through ratios such as unemployment rates and the overall household financial health. Gross Domestic Product, which shows the combined level of goods and services produced, gives the measurement of the total production and growth of an economy. Each of these three factors indicates economic performance, thus assisting the outgoing policymakers and businesses in their planning. It is imperative to note that the rate of immigration and agricultural produce are some of the ways through which the economy can be affected, but physical conditions like walls and fences are not used to define the economic status.