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BLOOMBERG CONCEPT
QUESTIONS & ANSWERS
Question :How accurately do GDP portray the economy
and why?
Correct answer:Inaccurately because the scope of GDP
measurements can change.
Question :Consider the formula GDP = C+I+G+(X-M). A
country is undergoing a boom in consumption of domestic and foreign luxury goods. In one year, the dollar growth in imports is greater than the dollar growth in domestic consumption. Assuming nothing else has changed, what happened to GDP?
Correct answer:It went down
Question :what is the meaning of each letter in the GDP
formula, C+I+G+(X-M).
Correct answer:C= Consumer spending
I = Investment (Gross Fixed Capital Formation) G= Government Spending
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X= Exports M= Imports
Question :Here is the most important economic data for
Australia and Sweden. which economy did better year- over-year (YOY) in the fourth quarter of 2013 compared to the fourth quarter of 2012? Use the two charts to investigate.
Correct answer:Sweden performed better
Question :In the United States, why is there a strong
correlation between unemployment and GDP?
Correct answer:Consumer spending accounts for two-
thirds of the U.S. economy when the number of unemployed consumers rises, there is less consumer spending.
Question :Here is a chart showing both nominal GDP
growth and real GDP growth for a country. Which of the following can be a true statement at the time the chart was captured?
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Correct answer:We have an expert-written solution to this
problem!The country has deflation. The bottom line is nominal growth and the top line is real growth.
Question :Which of the following lines is the best leading
economic indicator?
Correct answer:PMI
Question :What typically happens to nonfarm payrolls,
the PMI indicator, and housing starts at the onset of a recession in the United States?
Correct answer:Nonfarm payrolls go down, the PMI
indicator goes DOWN, the housing starts goes down.
Question :Which of the following qualities of economic
indicators do investors prize the most?
Correct answer:Timeliness of release
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Question :Why is the release of GDP statistics less
interesting to investors than the release of other economic indicators?
Correct answer:Because GDP statistics are released well
after other economic indicators.
Question :Which of the following important U.S.
economic indicators is only available on a quarterly basis?
Correct answer:GDP
Question :Which economic indicator is most directly
linked to unemployment?
Correct answer:nonfarm payrolls
Question :What is the main reason that investment banks
create estimates of economic indicators?
Correct answer:To know when specific economic data
points are a positive or negative surprise.