Economic Forecasting Is Not Perfect

question 48

Multiple Choice

Economic forecasting is not perfect:

• A) So this means that any attempt to do so should be abandoned.
• B) But this does not mean no attempt should be made to make forecasts.
• C) Because the information on which it is based is always inaccurate.
• D) It is only based on normative information not positive information.

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Definitions:

Currency

The paper bills and coins in the hands of the public.

Open-Economy Macroeconomic Model

A framework used in economics to analyze and understand the behaviors and interactions of economies that engage in international trade and finance.

Import Quotas

Limits set by a government on the amount of a specific good that can be imported into the country.

Loanable Funds

The market model that describes the supply and demand for money that is available for borrowing and lending.