Bloomberg market concepts Questions with Approved Answers | Latest solutions

Bloomberg market concepts Questions with Approved Answers | Latest solutions
Question 1: How accurately do GDP portray the economy and
why?
CORRECT ANSWER: Inaccurately because the scope of GDP
measurements can change.
Question 2: Consider the formula GDP = C+I+G+(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?
CORRECT ANSWER: It went down
Question 3: what is the meaning of each letter in the GDP
formula, C+I+G+(X-M).
CORRECT ANSWER: C= Consumer spending, I = Investment
(Gross Fixed Capital Formation), G= Government Spending, X=
Exports, M= Imports

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