The Forecast for the Third Quarter Is 2,000 Units; the Seasonal

question 6

Multiple Choice

The forecast for the third quarter is 2,000 units; the seasonal index for the quarter is 1.18. What are the seasonally adjusted sales for the quarter?

• A)2,000
• B)2,018
• C)2,118
• D)2,360

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Definitions:

Government Securities

Financial instruments issued by a government to borrow money from investors with a promise to pay back with interest.

Recessionary Gap

A situation in macroeconomics where the actual output of an economy is less than its potential output, leading to unemployment and underutilized resources.

Money Supply

The aggregate financial amounts present in an economy at an identified time.

Interest Rate

The cost of borrowing money expressed as a percentage of the amount borrowed or the return on investment.