Which of the following economic indicators is most commonly used to assess the overall health of an economy and can be used to predict future economic performance in the context of AP Economics long response questions?

The most commonly used economic indicator to assess the overall health of an economy is Gross Domestic Product (GDP). GDP measures the total value of all goods and services produced within a country over a specific time period, showing how much economic activity is happening. A rising GDP indicates that the economy is growing, which often leads to more jobs and higher income for people, while a falling GDP can signal economic trouble. For example, if a country's GDP increases from year to year, it suggests that businesses are thriving and consumers are spending more, which can help predict continued economic growth. Therefore, GDP is a key tool in AP Economics for analyzing both current conditions and future trends in the economy.