1
BMC Answers (Bloomberg) Latest 2020/2021, Complete solu Rated Study Guide) University of Massachusetts, Low
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 ...
complete solu rated study guide university of massachusetts
low bloomberg answers economic indicators the primacy of gdp 30 min knowledge check 1 how a
Written for
BMC
BMC
BMC
All documents for this subject (322)
Seller
Follow
ScottStevens
Reviews received
Content preview
BMC Answers (Bloomberg) Latest 2020/2021, Complete solu
Rated Study Guide) University of Massachusetts, Low
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 con
domestic and foreign luxury goods. In one year, the dollar growth in imports is gr
dollar growth in domestic consumption. Assuming nothing else has changed, wha
GDP?
• It went down.
Knowledge Check 3
Here is the most important economic data for Australia and Sweden. Which econ
better year-over-year (YOY) in the fourth quarter of 2013 compared to the fourt
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 fo
country. Which of the following can be a true statement at the time the
captured?
a. The country has deflation. The bottom line is nominal growth and the t
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 con
pain. It is defined as the inflation rate plus the unemployment rate. Review
the country with the highest “misery index.”
a. Argentina
Downloaded by: NewAcademicsSolutions | mbuguajoy97@gmail.com
1
,4. What typicallyDihstraibputp
ioneon
fst hi st doocn
umoenn tfias rillem
galpayrolls, the PMI indicator, and housi
f i S ?
2
, 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
other economic indicators?
a. Because GDP statistics are released well after other economic indica
3. Which of the following important U.S. economic indicators is only availabl
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 lik
house prices, industrial production, employment, retail sales, and GDP. Based on the
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 followin
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 coun
purple line denotes historic real GDP growth. The white line denotes the
estimated real GDP growth. The red line denotes the most pessimistic analy
The green line denotes the most optimistic analyst forecast. For which co
there the most controversy among the analyst community about 2016 gro
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?
3
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller ScottStevens. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $14.49. You're not tied to anything after your purchase.
