Computer forecasting models have
A) been able to forecast changes in the growth rate of real GDP with considerable accuracy.
B) had only limited success predicting turns in key economic variables such as real GDP.
C) been able to accurately forecast the future direction of inflation but not real GDP.
D) been able to accurately forecast the future direction of real GDP but not inflation.

Question

Quizplus · Accepted Answer

While computer forecasting models have improved over time, they still have limitations in predicting turns in key economic variables such as real GDP. They are better at forecasting changes in the growth rate of real GDP with some degree of accuracy, but not consistently precise. Inflation forecasting is also notoriously challenging, and while computer models may provide some guidance, they cannot predict future inflation with complete certainty.

Computer Forecasting Models Have