Which of the following is an example of an economic indicator?

The GDP growth rate is an essential economic indicator because it measures the overall economic performance of a country. It reflects the increase in the value of goods and services produced within a nation over a specific period, typically a quarter or year. By tracking changes in GDP, analysts can gain insights into whether an economy is expanding or contracting, which is crucial for understanding economic health and making informed policy decisions.

While other options, like interest rates, stock market performance, and consumer spending, are also significant financial metrics, they serve as indicators of specific aspects of the economy rather than providing a comprehensive overview like the GDP growth rate. Interest rates can influence borrowing and spending behaviors, stock market performance can reflect investor sentiment, and consumer spending is a vital component of GDP itself. However, GDP growth rate stands out by encapsulating the overall economic activity and health of a country.