There are various tools that Economists use to measure the economy. No one tool offers a full or clear picture of economic health. Rather, these tools must be used in concert. Here is a basic definition and description of GDP, GNP, PPP and The Big Mac Index (all you need for APCG).
Of course, there are more creative and holistic means to measure the health of the economy. For example, statistician Nic Marks asks why we measure a nation’s success by its productivity — instead of by the happiness and well-being of its people. He introduces the Happy Planet Index, which tracks national well-being against resource use (because a happy life doesn’t have to cost the earth). Which countries rank highest in the HPI? You might be surprised.
