A way of developing forecasts based on general economic conditions, typically projected gross national product (GNP) in constant dollars along with projections of consumer and wholesale price indexes, interest rates, unemployment levels, and federal government expenditures is known as the build-up approach.

Question

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The described method is known as the "econometric approach" or "macroeconomic approach," not the "build-up approach." The build-up approach involves aggregating individual forecasts from various segments or units.

A Way of Developing Forecasts Based on General Economic Conditions