One Year-Ahead-Forecasts for Real GDP

question 129

Multiple Choice

One year-ahead-forecasts for real GDP

• A)reflect forecasters' beliefs about the determinants of potential GDP over the next year.
• B)are usually equal to the current year's GDP.
• C)are usually equal to a weighted average of real GDP over the past five years.
• D)reflect what forecasters believe will happen to the different spending components of real GDP.
• E)have no real use and are seldom done.

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Definitions:

Compounded Monthly

Interest calculation method where the interest amount is added to the principal sum so that the next interest calculation includes interest upon interest.

Principal Paid

The portion of a loan payment that goes toward reducing the original amount borrowed, distinct from interest or other fees.

Extra Payments

Additional payments made over the required minimum payment on debts like loans or mortgages, aimed at reducing the principal balance more quickly.

Total Interest

The total amount of interest paid over the lifetime of a loan.