Go to the frequently-asked-questions (FAQ) page of the BEA site and read about the accuracy of GDP. After reading it pleaseanswer the following:

Occasionally, GDP has to be revised to reflect new methods of collecting data and changes in the economy. What did recent study find in regards to the long-term growth rate revisions?

What do we know about the accuracy of GDP?

Select one:

A.

a tendency toward no revisions

B.

average less than 0.1 percentage point over the 1993-2012 period

C.

are large and positive

D.

are small and negative

bea Data " Tools " NEWS " Research - Resources - About - Help Search Q For policymakers and businesses to better understand the economy and to formulate appropriate policies, up-to-date and accurate estimates of gross domestic product (GDP) and other important Ask us a question measures, such as the personal saving rate, are essential. BEA's estimate release and revision schedule is designed to provide the mo e while taking advantage of progressively more Need help? complete and more accu n the Census Bureau, the Bureau of Labor Statist Guidelines for Citing BEA Information An overview of BEA's revision processes and the source data are described in "Taking the Pulse of Economy: Measuring GDP, by J. Steven Landefeld, Eugene P. Seskin, and Barbara M. Fraumeni in the Spring 2008 issue of the Journal of Economic Perspectives. The methodologies underlying the national accounts are described in detail in Concepts and Methods of the U.S. National Income and Product Accounts on the BEA Web site Periodically, BEA conducts studies to assess the acc racy of GDP-where accuracy is assessed by examining whether the successive vintages of the estimates present a consistent, general picture of the economy. While there is always a tra est studies show that the early GDP estimates have arly vintages of GDP event a useful pich ity. They c ndicate whether growth is positive or negative, whether growth is soc erating whether growth is high or low relative to the trend, and where the y is in relation to the bus s cycle. Further, the magnitude of the revisions to the early estima ends to be A recent study published in the August 2014 Survey of Current Business found that the revisions to GDP over time do not significantly affect the picture of GDP growth. Specifically: * Revisions to long-term growth rates are small, averaging less than 0.1 percentage point for average growth rates over the 1993-2012 period. # There are no substantial measured by the shares of GDP or GDI-to key measures, such as investment and government expenditures or the national saving rate. The revisions to the contributions of key components of GDP growth are small and do not substantially change the ordinal rankings of the components' contributions to growth over expansions and contracti The overall pattern of change in GDP over business cycles is little changed by the revisions (see charts 1 and 2 belowl. The following charts are based on GDP data that were published as part of 2013 comprehensive revision of the national econor ants on July 31, 2013. More information on the annual and comprehensive revisions of the national income and product accounts is available at www.bea gawnational/index.htm. Percent Change in Real Gross Domestic Product, 1983-1997 10.0 40 2.0 2.0 -40 -100 198361 198501 198401 198601 198201 198701 191601 199701 -Latest Percent Change In Real Gross Domestic Product, 1998-2012 6.0 20 20 40 -6.0 199501 199803 Advance Late at