Which of the Following Relationships Do Forecasters Use to Make

Multiple Choice

Which of the following relationships do forecasters use to make their one-year-ahead predictions for real GDP?

A) Real GDP is the sum of consumption, investment, government purchases, and net exports.
B) Real GDP is determined by the amount of capital, labor, and technology employed in the economy.
C) Real GDP is determined by the capital and labor employed in the economy.
D) Real GDP in any year should equal real GDP in the previous year.
E) Real GDP equals nominal GDP during the base year.