Answer:
Evaluating economic performance means measuring how well the economy has one.
The purpose for appraising or measuring economic performance is because one cannot manage what one cannot measure.
Explanation:
Some of the metrics for measuring economic performance are:
- GDP/Capita
- Inflation Rate
- Rate of Unemployment
- External Reserves
- Real disposable incomes
- Human development index
All of these factors can be influenced using either Fiscal of Monetary tools and government policies.
The extent to which each tool is deployed depends on the result from the performance evaluation.
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