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.