bloomberg market concepts Questions And Answers
1. Inaccurately because the scope of GDP measurements can change.:
How accurately do GDP portray the economy and why?
2. It went down: Consider the formula GDP = C+I+G+(X-M). A
country is undergo- ing 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?
3. C= Consumer spending
I = Investment (Gross Fixed Capital
Formation) G= Government Spending
X= Exports
M= Imports: what is the meaning of each letter in the GDP formula,
C+I+G+(X-M).
4. Sweden performed better: Here is the most important economic
1/
, data for Aus- tralia 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.
5. Consumer spending accounts for two-thirds of the U.S. economy when
the number of unemployed consumers rises, there is less consumer
spending.: In the United States, why is there a strong correlation
between unemployment and GDP?
6. The country has deflation. The bottom line is nominal growth and the top
line is real growth.: 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?
7. PMI: Which of the following lines is the best leading economic
indicator?
8.Nonfarm payrolls go down, the PMI indicator goes DOWN, the housing
starts goes down.: What typically happens to nonfarm payrolls, the PMI
indicator, and housing starts at the onset of a recession in the United
States?
9. Timeliness of release: Which of the following qualities of economic
indicators do investors prize the most?
2/
1. Inaccurately because the scope of GDP measurements can change.:
How accurately do GDP portray the economy and why?
2. It went down: Consider the formula GDP = C+I+G+(X-M). A
country is undergo- ing 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?
3. C= Consumer spending
I = Investment (Gross Fixed Capital
Formation) G= Government Spending
X= Exports
M= Imports: what is the meaning of each letter in the GDP formula,
C+I+G+(X-M).
4. Sweden performed better: Here is the most important economic
1/
, data for Aus- tralia 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.
5. Consumer spending accounts for two-thirds of the U.S. economy when
the number of unemployed consumers rises, there is less consumer
spending.: In the United States, why is there a strong correlation
between unemployment and GDP?
6. The country has deflation. The bottom line is nominal growth and the top
line is real growth.: 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?
7. PMI: Which of the following lines is the best leading economic
indicator?
8.Nonfarm payrolls go down, the PMI indicator goes DOWN, the housing
starts goes down.: What typically happens to nonfarm payrolls, the PMI
indicator, and housing starts at the onset of a recession in the United
States?
9. Timeliness of release: Which of the following qualities of economic
indicators do investors prize the most?
2/
