BMC (Bloomberg) Questions with Correct Answers_Updated and Latest 2023/2024

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 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.

Knowledge Check 3

Here is the most important economic data for Australia 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.

 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 the number 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 a country.

Which of the following can be a true statement at the time the chart was captured?

a. The country has deflation. The bottom line is nominal growth and the top line is 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 consumer pain. It is

defined as the inflation rate plus the unemployment rate. Review and identify the

country with the highest “misery index.”

a.  Argentina

4. What typically happens to nonfarm payrolls, the PMI indicator, and housing starts at the

onset of a recession in the United States?

a. Nonfarm payrolls go DOWN, the PMI indicator goes DOWN, the housing starts goes

DOWN