A Forecast That Is Based on All the Relevant Information

question 7

Multiple Choice

A forecast that is based on all the relevant information available is

• A)usually accurate.
• B)usually no better than a random guess given that the future bears many uncertainties.
• C)useful only in the prediction of cost- push inflation.
• D)called a rational expectation.
• E)useful only in the prediction of demand- pull inflation.

---

Definitions:

Labor-force Participation Rate

The percentage of the working-age population that is active in the labor market, either employed or actively seeking employment.

Labor Force

The total number of people employed and unemployed but looking for work within an economy.

Employed Category

A classification within labor market statistics representing individuals who are currently employed and working.

PID Control

A control loop mechanism employing proportional, integral, and derivative terms to control a process, widely used in industrial control systems.