In order to estimate the current annual GDP, economists:

Question

Quizplus · Accepted Answer

Adjusting quarterly GDP estimates to account for seasonal patterns is necessary as economic activity tends to fluctuate throughout the year, and this adjustment provides a more accurate picture of the overall economic performance. Simply multiplying the quarterly estimate by four could lead to inaccuracies due to these seasonal fluctuations. Taking an average of the last four quarters measured may also not account for these seasonal changes. Adjusting for changes in price level is necessary for calculating real GDP, but not for estimating the current annual GDP.

In Order to Estimate the Current Annual GDP, Economists