In August of this year, Jack can best estimate the current year's GDP by:
A) adjusting the first two quarterly estimates of GDP for seasonal variation.
B) taking an average of the last four quarterly estimates of GDP available.
C) multiplying the most recent quarter's GDP estimate by four.
D) looking back at previous years GDP in order to make an accurate projection.

Question

Quizplus · Accepted Answer

Adjusting the first two quarterly estimates of GDP for seasonal variation is the best way to estimate the current year's GDP in August. This is because seasonal variation can distort the data, and by adjusting for it, we can get a more accurate estimate of the underlying trend.

In August of This Year, Jack Can Best Estimate the Current