Which of the following is commonly used as an economic indicator to measure the global economy?

• A. Unemployment Rate
• B. Gross Domestic Product (GDP)
• C. Exchange Rate
• D. Consumer Price Index (CPI)

Answer: (B)

Verified step by step guidance

1. Understand that economic indicators are statistics that provide information about the overall health and direction of an economy.
2. Recognize that the Gross Domestic Product (GDP) measures the total value of all goods and services produced within a country over a specific period, making it a broad indicator of economic activity.
3. Note that while the Unemployment Rate, Exchange Rate, and Consumer Price Index (CPI) are important economic indicators, they focus on specific aspects such as labor market conditions, currency value, and inflation respectively.
4. Identify that GDP is commonly used as a primary indicator to assess the size and health of the global economy because it aggregates economic output across countries.
5. Conclude that among the options given, Gross Domestic Product (GDP) is the most appropriate and widely used indicator to measure the global economy.