Which of the following is most commonly used to monitor short-run changes in economic activity?

Question

Quizplus · Accepted Answer

Real GDP is a measure of the output produced in the economy and is commonly used as an indicator of short-run changes in economic activity. Changes in real GDP reflect changes in the level of economic activity and provide insights into the overall health of the economy. The other options (inflation rate, interest rates, and value of the U.S. dollar in the foreign exchange market) may also be useful in monitoring economic activity, but they are not as commonly used and may have other factors that influence their movements besides short-run changes in economic activity.

Which of the Following Is Most Commonly Used to Monitor