5.Computer forecasting models haveGroup of answer choices-been able to forecast changes in the growth rate of real GDP with considerable accuracy.-had only limited success predicting turns in key economic variables such as real GDP.-been able to accurately forecast the future direction of inflation but not real GDP.-been able to accurately forecast the future direction of real GDP but not inflation. Which is correct?

Question
Asked Nov 8, 2019
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5.

Computer forecasting models have
Group of answer choices
-been able to forecast changes in the growth rate of real GDP with considerable accuracy.
-had only limited success predicting turns in key economic variables such as real GDP.
-been able to accurately forecast the future direction of inflation but not real GDP.
-been able to accurately forecast the future direction of real GDP but not inflation.
 
Which is correct?
 
 
 
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Expert Answer

Step 1

The computer forecasting models are mainly used for forecasting the exogenous variables that are not affected by any other variable in an economic model. 

Step 2

The CPI measures change in the price level of a basket of goods and services in a period and real GDP is the economic measure of the total economic output which is adjusted to the price level in the economy. So, both inflation o...

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