BMC exam study guide-comprehensive-2022
• The primacy of GDP
•
• Q: How accurately do GDP statistics portray the economy and why?
• A: Inaccurately because the scope of GDP measurements
• Explain: Governments from
...
BMC exam study guide-comprehensive-2022
• The primacy of GDP
•
• Q: How accurately do GDP statistics portray the economy and why?
• A: Inaccurately because the scope of GDP measurements
• Explain: Governments from time to time change the scope of GDP measurement. Just because they are official and numerical does not mean that they are accurate. The term “domestic” in GDP unambiguously inks to a nation state
•
• Essential Economic Indicators
1. Economic Growth
• It is the market value of all final goods and service produced in a country
• GDP=C+I+G+(X-M)
• Nominal GDP Growth(%)-Inflation(%)=Real GDP Growth(%)
2. Inflation
• It is general increaseing in price of goods and services which is diminishing the purchasing power of money. In other words, the unit of money tomorrow buy less than the same money we buy today
• In US, there are two primary resources inflation data, the quarterly GDP Report and Monthly Consumer Price Index(CPI)
• Quarterly GDP Report: contain the seriers research of GDP price
deflator, based on whole economy
• CPI: based on the represented the basket of goods and services, such as food, housing and automoblie
• Time change, tasting change, technology change
3. Unemployment
• The consumer make consumption by their salary. When the economy makes recession, people lose their job, it will also depressure the GDP growth.
• The economy shrinks, the employment declines
CONTINUED......
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