Question

Why is it important to measure the performance of the economy?

so the government can set the proper prices for goods and services


so consumers can buy from reliable companies


so businesses can make good decisions about the future


so investors can know which stocks will increase in value

Answer 1

The reason why it's so important is that it indicates the growth in economic output, whether measured by GDP (gross domestic product), GVA (gross value added), or any other measure. The stage of development of an economy is crucial for comparing two economies.