Bloomberg Economic Indicators Complete solutions (A+ guide)

How accurately do GDP statistics portray the economy and why? Inaccurately because the scope of GDP measurements can change 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 It went down Here is the most important economic data for Australia and Sweden. Which economy did better year-over-year (YOY) ion the 4th quarter of 3012 compared to the 4th quarter in 2012? Use charts Sweden In the US, whys is there a strong correlation between unemployment and GDP? Consumer spending accounts for 2/3 of the US economy. When the number of unemployment rises, there is less consumer spending. Here is a chart showing both nominal and real GDP growth for a country. Which of the following can be a true statement? The country has deflation. The bottom line is nominal growth and the top line is real growth. The white line denotes GDP growth. Which of the following lines is the best leading economic indicator? Green line The misery index is often cited in the media as a way to measure consumer pain, It is defined as the inflation rate plus the unemployment rate. Review the char and identify the country with the highest misery index Italy What type of indicators are unemployment and business confidence? Unemployment is coincident and business conflict is leading Which of the following qualities of economic indicators do invests prize most? Timeliness of release Why is the release of GDP statistics less interesting to investors than other indicators? Because GDP statistics are released well after other economic indicators