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 because most macroeconomic time-series exhibit predictable seasonal patterns. It is important to remove these predictable patterns to get a clear picture of underlying trends and to make accurate forecasts.

Seasonal Adjustment in Macroeconomic Analysis