In the nation of Paolaland,quarterly GDP is always higher in the second quarter than in other quarters.In order to account systematically for this predictable second-quarter jump in GDP,Paolaland's government statisticians will

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Seasonal adjustment is a statistical procedure used to remove the predictable fluctuations in economic data that occur due to seasonal factors, such as holidays or weather patterns. In Paolaland's case, the predictable second-quarter jump in GDP can be considered a seasonal factor, and therefore, the government statisticians can use seasonal adjustment to account for it systematically. This will provide a more accurate picture of the underlying economic trends in Paolaland. Option B, reporting a four-quarter moving average, can also help smooth out some of the seasonal fluctuations, but it may not capture the specific second-quarter jump in GDP. Options C and D, reporting GNP or personal income instead of GDP, do not directly address the issue of seasonal fluctuations in GDP.

In the Nation of Paolaland,quarterly GDP Is Always Higher in the Second