Econometric Forecasting Methods

question 48

Multiple Choice

Econometric forecasting methods:

• A) require explicit assumptions about the relations among economic variables.
• B) can estimate the direction, but not the magnitude, of change for forecasted variables.
• C) can estimate the magnitude, but not the direction, of change for forecasted variables.
• D) always remain the same from period to period.

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Definitions:

Surplus

The situation in which the quantity of a good or service supplied is more than the quantity demanded.

Import Quotas

Restrictions set by a government on the quantity of goods that can be imported into a country.

Net Exports

The value of a country's total exports minus its total imports, representing the net effect of foreign trade on an economy.

Capital Flight

A large and sudden reduction in the demand for assets located in a country