The economy is measure the overall production and consumption of county or a region. The economy measures the growth factors relations to production and consumption. There are many indicators which are used to mark economic growth or economic recession. Economic growth will be happening when there is a growth of the Gross Domestic Product (GDP) while economic recession will happen when there is negative trend in the GDP. GDP is therefore an important indicator of the overall well being of the economy. Closely related to the GDP are indicators of rate of unemployment, rate of inflation.
These are two important indicators which are used to show the state of the economy. They present the actual application of the trend in economy in the normal life of the people. Increased rate of employment and reduced rate of inflation are important markets of a positive economic growth. Therefore increase job losses which increases rate of unemployment and increased rate of inflation can be used as early indicators of a receding economy.