BMC Answers (Bloomberg) Latest 2020/2021, Complete solutions (A+ Rated Study Guide) University of Massachusetts, Lowell.
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BMC Answers (Bloomberg) Latest 2020/2021, Complete solutions (A+ Rated Study Guide) University of Massachusetts, Lowell.
Bloomberg Answers
Economic Indicators
The Primacy of GDP (30 min.)
Knowledge Check 1
How accurately do GDP statistics portray the economy and why?
• Inacc...
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BMC Answers (Bloomberg) Latest 2020/2021, Complete solut
Rated Study Guide) University of Massachusetts, Lowe
Bloomberg Answers
Economic Indicators
The Primacy of GDP (30 min.)
Knowledge Check 1
How accurately do GDP statistics portray the economy and why?
• Inaccurately because the scope of GDP measurements can change.
Knowledge Check 2
Consider the formula GDP = C + I + (X- M). A country is undergoing a boom in cons
domestic and foreign luxury goods. In one year, the dollar growth in imports is gre
dollar growth in domestic consumption. Assuming nothing else has changed, what
GDP?
• It went down.
Knowledge Check 3
Here is the most important economic data for Australia and Sweden. Which econo
better year-over-year (YOY) in the fourth quarter of 2013 compared to the fourth
2012?
Use the two charts to investigate.
• Sweden performed better.
Knowledge Check 4
In the US, why is there a strong correlation between unemployment and GDP?
• Consumer spending accounts for two-thirds of the U.S. economy. When th
of unemployed consumers rises, there is less consumer spending.
SECTION QUIZ
1. Here is a chart showing both nominal GDP growth and real GDP growth for
country. Which of the following can be a true statement at the time the c
captured?
a. The country has deflation. The bottom line is nominal growth and the to
real growth.
2. Which of the following lines is the best leading economic factor?
a. PMI
3. The “misery index” is often cited in the media as a way to measure cons
pain. It is defined as the inflation rate plus the unemployment rate. Review a
the country with the highest “misery index.”
a. Argentina
4. What typically happens to nonfarm payrolls, the PMI indicator, and housin
, Monitoring GDP (10 min.)
SECTION QUIZ
1. Which of the following qualities of economic indicators do investors prize
a. Timeliness of release.
2. Why is the release of GDP statistics less interesting to investors than the r
other economic indicators?
a. Because GDP statistics are released well after other economic indicat
3. Which of the following important U.S. economic indicators is only available
a quarterly basis?
a. GDP
4. Which economic indicator is most directly linked to unemployment?
a. Nonfarm payrolls.
Forecasting GDP (20 min.)
Knowledge Check 1
Here is the economic calendar for the UK for August 2013. Examine indicators like
house prices, industrial production, employment, retail sales, and GDP. Based on thes
indicators, how did the UK economy perform overall?
• Above
Expectations Knowledge
Check 2
This chart was captured in mid-2014. At that point in time, which of the following
have described the growth in the Chinese economy predicted in this pop -out tab
• Deceleration
Knowledge Check 3
How have economic forecasts for this economy evolved?
• Minimal Change
SECTION QUIZ
1. These charts show data for four countries as of early 2016. For each count
purple line denotes historic real GDP growth. The white line denotes the c
estimated real GDP growth. The red line denotes the most pessimistic analys
The green line denotes the most optimistic analyst forecast. For which cou
there the most controversy among the analyst community about 2016 grow
a. RUSSIA
2. What is the main reason that investment banks create estimates of
economic indicators?
a. To know when specific economic data points are a positive or negat
3. Which of the following is the biggest pitfall of economic indicators?
a. They do not consistently presage turning points.
4. Here is a chart displaying estimates of the initial jobless claims indicator, one
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