What does an economic indicator typically inform about?

An economic indicator is a statistical metric that provides insight into the economic performance of a country. It encompasses various data points, such as Gross Domestic Product (GDP), unemployment rates, inflation rates, and consumer confidence indexes. These indicators help economists and policymakers assess the health of an economy, allowing them to make informed decisions based on observed trends and patterns.

The overall economic performance of a country is crucial, as it can influence everything from monetary policy to investment strategies. For instance, a rising GDP might indicate economic growth, while rising unemployment could signal economic trouble. This information is vital for both government and businesses in strategizing for future challenges and opportunities.

While other options may touch upon aspects of the economy, they do not encapsulate the primary function of economic indicators as effectively as the overall performance of a country does. Thus, option B accurately represents the essence of what economic indicators typically inform about.