Why Is Forecasting GDP in the Long Run So Difficult

question 11

Multiple Choice

Why is forecasting GDP in the long run so difficult?

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