Question 28435 • Personal Finance - EL3403
Answer:
Economic indicators and market indexes can work together to show whether an 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 financial crisis of 2008 and 2009, market data reflected this decline. Employment also dropped during this period, matching the slowdown in economic growth. Market indexes showed falling prices and demand as other indicators weakened. Together, these examples show how economic indicators and market indexes help explain changes in the economy.