Why Is Forecasting GDP in the Long Run So Difficult

question 20

Multiple Choice

Why is forecasting GDP in the long run so difficult?

• A) There is no expertise in forecasting the long-run trend in real GDP.
• B) There is no regularity in the frequency and amplitude of fluctuations in real GDP.
• C) These is an absence of data that provides any information on future trends.
• D) Current models are not sophisticated enough to conduct this exercise.
• E) Structural and statistical forecasting provide differing results.

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