In the nation of Ophelia, quarterly GDP is always higher in the second quarter than in other quarters. In order to account for this predictable jump in GDP, what will Ophelia's government statisticians most likely do?
A) Make sure to account for inventory changes during the second quarter.
B) Report real GDP, not nominal GDP.
C) Focus on GNP rather than GDP during the second quarter.
D) Make a seasonal adjustment for the second quarter data.

Question

Quizplus · Accepted Answer

Since the jump in GDP is predictable and occurs consistently during a specific quarter, Ophelia's government statisticians will most likely adjust the data by making a seasonal adjustment. This adjustment will help to provide a more accurate representation of the actual economic growth, rather than simply reflecting the seasonal pattern. Therefore, option D is the best choice.

In the Nation of Ophelia, Quarterly GDP Is Always Higher