Which statistic is the best single measure of an economy's well-being?
A) the exchange rate
B) the labour force participation rate
C) the gross domestic product
D) the natural rate of unemployment

Question

Quizplus · Accepted Answer

Gross domestic product (GDP) is a comprehensive measure of an economy's well-being as it reflects the total value of goods and services produced within a country's borders over a specific period. It captures economic activity and growth, and is widely used by policymakers to make decisions about monetary and fiscal policies. While other statistics such as the labour force participation rate and natural rate of unemployment are important indicators, they only capture specific aspects of an economy and do not provide a complete picture of overall economic health. The exchange rate can also be an important factor in an economy, but it is subject to fluctuations and can be influenced by a variety of external factors.

Which Statistic Is the Best Single Measure of an Economy's