Seasonal adjustment in macroeconomic analysis
A) is not usually important.
B) is not necessary because economic activity tends to be too irregular for data-adjustment purposes.
C) is often appropriate because most macroeconomic time-series exhibit predictable seasonal patterns.
D) cannot be done because seasonal variation in production is extremely volatile and unstable.
E) should never be done because is can mask important seasonal phenomena.

Question

Quizplus · Accepted Answer

Seasonal adjustment is often appropriate in macroeconomic analysis because many time-series (such as retail sales or agricultural output) exhibit predictable patterns that repeat during the same period each year (e.g. Christmas shopping or harvest season). Seasonal adjustment can help to remove these predictable variations and make it easier to understand underlying trends in the data.

Seasonal Adjustment in Macroeconomic Analysis