Which of the Following Relationships Do Forecasters Use to Make

question 71

Multiple Choice

Which of the following relationships do forecasters use to make their one-year-ahead predictions for real GDP?

• A)Real GDP is the sum of consumption, investment, government purchases, and net exports.
• B)Real GDP is determined by the amount of capital, labor, and technology employed in the economy.
• C)Real GDP is determined by the capital and labor employed in the economy.
• D)Real GDP in any year should equal real GDP in the previous year.
• E)Real GDP equals nominal GDP during the base year.

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Definitions:

Payee

The party in whose favor a check, draft, or note is made, entitled to receive the payment from the payer.

Drawer

The person or entity that writes a check or draft instructing the drawee to pay someone else.

Internal Control

A system within a business that oversees its operations and financial processes to ensure accuracy and compliance.

Major Deposit

A significant amount of money placed in a financial institution or investment, often referring to a sizable transaction that impacts financial statements.