A major problem that may occur with models that predict the values of economic variables in the future is that
A)researchers are pessimistic about the future.
B)the model may fail to acknowledge that economic actors will change their behavior in response to changing situations.
C)the model may make predictions that conflict with widely held opinions.
D)no one cares about these predictions.

Question

Quizplus · Accepted Answer

Economic actors, such as consumers and producers, can change their behavior in response to changing situations, which may not be accounted for in the model. This can lead to inaccurate predictions of economic variables in the future.

A Major Problem That May Occur with Models That Predict