Quarterly GDP:
A) is always shown as a seasonally adjusted estimate for an annual rate.
B) takes account of unpredictable seasonal patterns in order to guess at annual GDP.
C) is adjusted for predictable, seasonal variation to predict what GDP would be if the economy continues at its current pace.
D) is the only representation of GDP that economists view as credible.

Question

Quizplus · Accepted Answer

Quarterly GDP is adjusted for predictable, seasonal variation in order to estimate what GDP would be if the economy continues at its current pace. This is known as the annualized quarterly growth rate. A is incorrect as quarterly GDP is an estimate for a quarter, not an annual rate. B is incorrect as it takes account of predictable seasonal patterns, not unpredictable ones. D is incorrect as there are other representations of GDP that economists view as credible, such as monthly GDP.