When analysing key macroeconomics data to assess GDP growth/decline, how would you measure the performance relative to sequential and year-to-year data? How will your analysis assist you in...

When analysing key macroeconomics data to assess GDP growth/decline, how would you
measure the performance relative to sequential and year-to-year data?
How will your analysis assist you in determining the direction of the stock market?
Why do you consider the relationship between the economy and the stock market an integral part
of the investment process? Explain your reasoning.
Solution
Year wise sequential data of GDP can be easily used to determine the GDP growth/decline over
a particular period. For each year we can find the growth/decline in GDP by using the formula
(GDP1 – GDP0)/GDP0. Their mean value...