In Practice Initial Estimates of GDP

question 21

Multiple Choice

In practice initial estimates of GDP

• A) are never revised
• B) are only revised several years after the initial release
• C) are subject to very small revisions that do not influence the measurement of economic growth
• D) are subject to significant revision that can alter measured growth
• E) are so heavily revised that they give no useful information whatsoever which explains why nobody trusts official statistics.

---

Definitions:

Cereal

A food product made from processed grains, typically eaten as breakfast and often enriched with vitamins and minerals.

Materials Quantity Variance

The difference between the expected and actual quantity of materials used in production, reflecting efficiency in materials usage.

Materials Standards

The established specifications regarding the quality and quantity of materials to be used in production.

Operations

Activities involved in the day-to-day functioning of a business or organization, aimed at producing goods or services.