why is it importanat for government to measure the economy?

Question

please be specfic and some examples

Answer 1

Economy is meassured to direct policies that are benificial to the society. Too much growth for developed nations is bad since it will overheat the economy due to too much resources being utilised. It can also produce rise in wage levels due to scarcity in the labor market to support the growth.
Too little growth will cool down the economy and the offseting results are too little resource requirements which will send the interest rates tumbling down, unemployment etc;.
So the government targets a growth rate that is sustainable that won't overheat or overcool the economy but keep it at a sustainable employment level and growth.
Former consultant to Federal Reserve, USA.

Answer 2

To maintain the health of a nation (much like a human body that grows) we need to have certain measurements to tell us about our "well-being". How are we doing? Are we growing too fast or too slow for overall health? How are things today vs. the past, etc. The best measurements we have to gain insight into these issues are GDP, unemployment statistics, inflation statistics, etc. We can then guide the economy toward proper growth with minimal instability issues like unemployment and inflation. The plans or policies that make this possible need all the data we can collect in order to keep the economy humming.