Question 28425 • Personal Finance - EL3403
Answer:
Economic indicators and market indexes help us understand whether the economy is growing or shrinking. Gross domestic product (GDP) is a key measure of economic growth, and a decline in GDP can signal that the economy is contracting. During the 2008–2009 financial crisis, market data showed this kind of economic decline. Employment also fell, matching the trend shown by GDP. Market indexes reflected the downturn as prices and demand dropped. Together, these indicators provide useful evidence for understanding economic changes.