Which of the following is not an indicator of economic growth?

A. CPI
B. PPI
C. GDP
D. High Level of Unemployment

Correct Answer:

Option D – High Level of Unemployment

Explanation

The following are some indicators of economic growth:

GDP. Gross Domestic Product, or GDP, is the total market value of all goods and services produced by a country in a specific time period, typically a year. This includes earnings from foreign investments.

Money Supply: Money supply is a representation of the total amount of money a country has in circulation. M2 is slightly more specific.

CPI: Consumer Price Index, or CPI, measures changes in consumer prices, or the retail prices paid for about 80,000 specific goods and services (called the market basket) by urban consumers for a specific month.

PPI: Called the Wholesale Price Index until 1978, the Producer Price Index, or PPI, measures and tracks the changes over time of the average selling price of domestically-produced goods and services.

CCI: Consumer Confidence Index (CCI), or what is sometimes referred to as the Consumer Confidence Survey, measures how consumers feel about the current and future economic conditions.

Employment Current Employment Statistics, or CES: provide data on national employment, unemployment, and wages and earnings across all non-agricultural industries, including civilian government workers.