Are Forecasts of Economic Activity Accurate Enough to Permit "Fine-Tuning

question 41

Multiple Choice

Are forecasts of economic activity accurate enough to permit "fine-tuning" of the economy?

• A)No, forecasting is so inaccurate that it should be abandoned.
• B)No, forecasts are not accurate enough for this.
• C)Yes, forecasts are accurate and reliable enough for this.
• D)Yes, at least most of the time.

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Definitions:

Geometric Average Return

The average compound return earned per year over a multi-year period.

Dividends

Payments made by a corporation to its shareholder members, representing a portion of the corporate profits.

Capital Gains Yield

The percentage change in the market price of an asset over a period, excluding dividends.

Shares

Shares represent units of ownership interest in a corporation or financial asset, providing a proportionate claim on its assets and profits.