Which of the following is correct?
A)Real GDP is the variable most commonly used to measure short-run economic fluctuations.These fluctuations can be predicted with a much accuracy.
B)Real GDP is the variable most commonly used to measure short-run economic fluctuations.It is almost impossible to predict these fluctuations with much accuracy.
C)Nominal GDP is the variable most commonly used to measure short-run economic fluctuations.These fluctuations can be predicted with some accuracy.
D)Nominal GDP is the variable most commonly used to measure short-run economic fluctuations.It is almost impossible to predict these fluctuations with much accuracy.

Question

Quizplus · Accepted Answer

Real GDP is the variable most commonly used to measure short-run economic fluctuations but it is almost impossible to predict these fluctuations with much accuracy. This is because economic fluctuations are affected by a range of complex and interrelated factors, such as consumer and business confidence, changes in government policy, and global economic conditions, among others. Therefore, while real GDP is a useful indicator of short-run economic fluctuations, it cannot be relied upon as a precise predictor of future economic performance.

Which of the Following Is Correct