Why is the GDP become the important factors in decision making in the economic policy?

see below

Explanation:

GDP is the value of all commodities and services produced within a country's border, in a particular period. Only finished consumer products and services are considered in calculating GDP.

The  GDP value is important because

1. GDP reports the state of a country's economy

An increase in GDP indicates growth in the economy. Growth in real GDP value signifies a health economy that creates adequate job opportunities, increasing incomes, and a wealthier nation. A decline in GDP communicates a recession that requires government

intervention.

2. For investment decisions

Investors use GDP as a reference point when making investment decisions. Declining GDP value indicates bad economic conditions, which will result in lower earnings and reduced stock prices.  Increasing GDP value is associated with good returns and higher stock prices.

i might look it up later.

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