GDP and Growth Forecasts MCQ — 94 Practice Questions with Answers

Q1. Consider the following statements regarding RBI's Survey of Professional Forecasters: 1. The RBI has been conducting the SPF since September 2007. 2. SPF panellists provide annual and quarterly forecasts of around 20 key macroeconomic indicators. 3. The survey has been conducted bi-monthly, instead of quarterly, from the 28th round. 4. SPF results represent the Reserve Bank of India's own official forecasts. Which of the statements given above are correct?

Q2. Consider the following statements: 1. Expenditure-based GDP at constant prices is the sum of constant-price household consumption, government consumption, fixed capital formation, investment in inventories and net exports. 2. Constant-price expenditure components are deflated only by applying one overall consumer price index to total GDP. 3. Constant-price estimates are never converted into common currency units for aggregation. Which of the statements given above are correct?

Q3. Consider the following statements: 1. The IMF's World Economic Outlook uses a bottom-up approach in producing forecasts. 2. In the WEO process, IMF country teams generate projections for individual countries. 3. WEO forecasts are made only by mechanically averaging previous global growth rates. Which of the statements given above are correct?

Q4. Consider the following statements regarding the benchmark-indicator method for quarterly GDP: 1. For each industry group, key indicators available in volume or quantity terms on a quarterly basis are used to extrapolate previous-year output or value added estimates. 2. In general terms, quarterly GDP estimates are extrapolations of the annual series of GDP. 3. Quarterly GVA by industry is compiled by directly surveying all establishments every quarter. 4. For current-price QGDP estimates, implicit price deflators are first estimated from wholesale and consumer price index data and then applied to constant-price estimates. Which of the statements given above are correct?

Q5. Consider the following statements: 1. Current-price national income is measured at prices prevailing during the period concerned. 2. Constant-price estimates remove the effect of prices by recomputing the series at prices of a chosen base year. 3. Constant-price estimates include both price change and production change and therefore are unsuitable for measuring real growth. Which of the statements given above are correct?