Economic Indicators: The Primacy of
GDP/BMC Certification
In 2015, an accounting gimmick gave Ireland a 26% growth rate in GDP. What does this event
reflect about the nature of GDP? - ANSIf the measurement of economic activity evolves, GDP
can change.
Essential Economic Indicators - ANSEconomic Growth, Inflation, Unemployment, Business
Confidence, Housing
Here is the most important economic data for New Zealand and Switzerland. Which economy
did better year-over-year (YOY) in the fourth quarter of 2018 compared to the fourth quarter of
2017? Use the two tables to investigate. - ANSNew Zealand performed better.
In the United States, why is there a strong relationship between unemployment and GDP? -
ANSConsumer spending accounts for two-thirds of the U.S. economy. When the number of
unemployed consumers rises, there is less consumer spending.
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 of the chart was captured? - ANSThe country
has inflation. The top line is nominal growth and the bottom line is real growth.
What is inflation? - ANSA general increase in prices of goods and services which diminishes the
purchasing power of money. In other words, it means that a unit of money tomorrow buys less
than the same unit of money would buy today. Which is why cost of living has gone up.
Which of the following lines is the best leading economic indicator? - ANSPMI
GDP per capita is a measure of prosperity because it divides the total GDP of a country by its
population. Which of the below forecasts for a country would result in the highest GDP per
capita growth? - ANSAn increase of 2% in GDP and a population growth of 0%
What typically happens to nonfarm payrolls, the PMI indicator, and housing starts at the onset of
a recession in the United States? - ANSNonfarm payrolls go DOWN, the PMI indicator goes
DOWN, the housing starts goes DOWN
Real GDP growth - ANSis the main gauge of economic health.
Economic growth - ANSis cyclical, with a series of booms and busts.
GDP/BMC Certification
In 2015, an accounting gimmick gave Ireland a 26% growth rate in GDP. What does this event
reflect about the nature of GDP? - ANSIf the measurement of economic activity evolves, GDP
can change.
Essential Economic Indicators - ANSEconomic Growth, Inflation, Unemployment, Business
Confidence, Housing
Here is the most important economic data for New Zealand and Switzerland. Which economy
did better year-over-year (YOY) in the fourth quarter of 2018 compared to the fourth quarter of
2017? Use the two tables to investigate. - ANSNew Zealand performed better.
In the United States, why is there a strong relationship between unemployment and GDP? -
ANSConsumer spending accounts for two-thirds of the U.S. economy. When the number of
unemployed consumers rises, there is less consumer spending.
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 of the chart was captured? - ANSThe country
has inflation. The top line is nominal growth and the bottom line is real growth.
What is inflation? - ANSA general increase in prices of goods and services which diminishes the
purchasing power of money. In other words, it means that a unit of money tomorrow buys less
than the same unit of money would buy today. Which is why cost of living has gone up.
Which of the following lines is the best leading economic indicator? - ANSPMI
GDP per capita is a measure of prosperity because it divides the total GDP of a country by its
population. Which of the below forecasts for a country would result in the highest GDP per
capita growth? - ANSAn increase of 2% in GDP and a population growth of 0%
What typically happens to nonfarm payrolls, the PMI indicator, and housing starts at the onset of
a recession in the United States? - ANSNonfarm payrolls go DOWN, the PMI indicator goes
DOWN, the housing starts goes DOWN
Real GDP growth - ANSis the main gauge of economic health.
Economic growth - ANSis cyclical, with a series of booms and busts.
