A Conditional Forecast of Real GDP Is

question 131

Multiple Choice

A conditional forecast of real GDP is

• A)a forecast using one of the 54 forecasts listed in Blue Chip Economic Indicators.
• B)a forecast based on potential GDP as opposed to the spending components of GDP.
• C)another name for the Blue Chip Consensus forecast.
• D)a forecast that explains what real GDP will be under alternative assumptions about the spending components.
• E)a forecast that is conditional on the time period in which it was made.

---

Definitions:

Frictional Unemployment

A type of unemployment that occurs when workers are between jobs, either because they are searching for new positions or are transitioning from one job to another.

Full Employment

A condition where every available work resource is employed in the most financially efficient method.

Labor Force Entrants

Individuals who are entering the workforce for the first time or after an absence, contributing to the available labor supply.

Real GDP

Gross Domestic Product adjusted for inflation, which accurately reflects the value of goods and services produced by an economy.