Macroeconomic Forecasting Is Made More Difficult Due to the Fact

question 8

Multiple Choice

Macroeconomic forecasting is made more difficult due to the fact that

• A) deviations from trend in real GDP are persistent.
• B) turning points are hard to predict.
• C) there is no regularity in comovements.
• D) consumption is smooth.

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Definitions:

Net Price

The actual price paid for a product or service after deducting any discounts, rebates, or promotions.

Complement Method

Method of computing the net price directly, using the complement of the trade discount rate.

Trade Discounts

Discounts given to buyers that generally are based on the quantity purchased.

Net Price

The real cost incurred for a product or service once all discounts, rebates, or allowances have been subtracted.