What indicators are commonly used to gauge economic performance?

The selection of GDP, unemployment rate, inflation rate, and balance of trade as indicators of economic performance is well-founded.

Gross Domestic Product (GDP) is a key indicator as it measures the total value of goods and services produced in a country, reflecting overall economic activity. A rising GDP typically indicates a healthy, growing economy.

The unemployment rate serves as a vital sign of economic health, indicating the percentage of the labor force that is jobless but actively seeking employment. High unemployment usually signals economic distress, while low unemployment suggests a thriving job market.

Inflation rate measures the rate at which the general level of prices for goods and services rises, eroding purchasing power. Controlled inflation is typically a sign of a healthy economy, while hyperinflation or deflation can indicate severe economic problems.

The balance of trade considers the difference between the value of a country's exports and imports. A favorable balance (more exports than imports) can indicate a strong economy, while a trade deficit may raise concerns about economic sustainability.

These indicators provide a comprehensive view of different aspects of the economy, which is essential for assessing overall economic performance over time.