Suppose you recently received the GDP numbers for the last quarter. When you calculated the change from the previous quarter, you observed the following: observed the following changes: Y ——> +1.5% C ——> +0.1% I ——> +3% G ——> +0.2% NX ——> unchanged How would you interpret each value in context with the whole of GDP? Is there anything in the data that is predictive (potentially) of future conditions?
Question 5:
Suppose you recently received the GDP numbers for the last quarter. When you calculated the change from
the previous quarter, you observed the following: observed the following changes:
Y ——> +1.5%
C ——> +0.1%
I ——> +3%
G ——> +0.2%
NX ——> unchanged
How would you interpret each value in context with the whole of GDP? Is there anything in the data that is
predictive (potentially) of future conditions?
Question 6:
You have a business that manufactures circuit boards for mobile phones. Suppose you received the GDP
numbers for the quarter after those in problem 5:
Y ——> +0.3%
C ——> -2%
I ——> +2.5%
G ——> +0.2%
NX ——> unchanged
a. Using the data from both quarters (prob 5 and prob above), what do you expect is happening in the
economy and what might this mean for your business? Explain why you came to this conclusion.
b. What does this portend for the future of the economy (if anything) and how might you position your business
given your analysis?
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
