Using a model of the economy's structure to estimate the future behavior of a variable is the procedure we assume is being followed under ________ expectations.
A)backward-looking
B)forward-looking
C)adaptive
D)extrapolative

Question

Quizplus · Accepted Answer

Forward-looking expectations rely on forecasting future economic variables based on a model or a set of rules, rather than simply extrapolating past trends (extrapolative), looking at past behavior (backward-looking), or adjusting to past errors (adaptive).

Using a Model of the Economy's Structure to Estimate the Future