The Organisation for Economic Co-Operation and Development (OECD) Summary Forecast

question 29

Multiple Choice

The Organisation for Economic Co-operation and Development (OECD) summary forecast for Greece reads 'The economy is suffering a serious recession in the context of the sizeable, but vital, fiscal retrenchment.' This means that:

• A) the Greek government needs to reduce its spending or increase its taxes for the economy to recover.
• B) the Greek economy is recovering through increases in the demand for exports.
• C) the level of household consumption as a percentage of total expenditure in Greece is likely to be high.
• D) new job formation and employment in Greece is likely to be high.

---

Definitions:

Maximum Potential Value

The highest theoretical value an investment or business project can achieve under optimal conditions.

Simulation Analysis

A method that uses a model to replicate complex systems and predict their behavior under different scenarios.

Scenario Analysis

A method of examining potential future occurrences by evaluating different possible results or scenarios.