BMC EXAM SOLUTIONS WITH
CORRECT ANSWERS
In 2015, an accounting gimmick gave Ireland a 26% growth
rate in GDP. What does this even reflect about the nature of
GDP? - CORRECT ANSWER-If the measurement of economic
activity evolves, GDP can change.
5 essential economic indicators - CORRECT ANSWER-
Economic growth
Inflation
Unemployment
Business Confidence
Housing
economic growth - CORRECT ANSWER-the ability of the
economy to increase the production of goods and services
GDP = ? - CORRECT ANSWER-C + I + G + (X-M)
Consider the formula GDP = C + I + G + (X - M), A country is
udnergoing 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; As imports act as a drag
CORRECT ANSWERS
In 2015, an accounting gimmick gave Ireland a 26% growth
rate in GDP. What does this even reflect about the nature of
GDP? - CORRECT ANSWER-If the measurement of economic
activity evolves, GDP can change.
5 essential economic indicators - CORRECT ANSWER-
Economic growth
Inflation
Unemployment
Business Confidence
Housing
economic growth - CORRECT ANSWER-the ability of the
economy to increase the production of goods and services
GDP = ? - CORRECT ANSWER-C + I + G + (X-M)
Consider the formula GDP = C + I + G + (X - M), A country is
udnergoing 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; As imports act as a drag
