Which Statement Is Most Defensible Regarding the Time Series Shown

question 48

Multiple Choice

Which statement is most defensible regarding the time series shown below?

• A)There appears to be strong seasonality.
• B)There appears to be a six-month seasonal cycle.
• C)The trend appears to be exponential.
• D)The quadratic trend would be required.

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Definitions:

GDP Deflator

An economic metric that converts output measured at current prices into constant-dollar terms to remove the effect of inflation.

Per Capita Real GDP

An economic measure that divides the real gross domestic product by the total population, indicating the average economic output per person, adjusted for inflation.

Real GDP

Gross Domestic Product adjusted for inflation, measuring the value of goods and services produced in an economy in real terms.

Nominal GDP

The market value of all final goods and services produced within a country in a year, measured using current prices without adjusting for inflation.