Even the most successful economic forecasters make mistakes since they
A)try to incorporate unexpected events into their forecasts
B)have to rely on a model of the economy that may not be accurate
C)always assume that people have rational expectations
D)generally make unrealistic assumptions
E)all of the above

Question

Quizplus · Accepted Answer

Economic forecasters cannot accurately predict unexpected events, such as natural disasters or major policy changes, which can have a significant impact on the economy. Additionally, economic models can only provide an approximation of the economy and may not be fully accurate. Therefore, even the most successful economic forecasters make mistakes. Choice A is true, but it's not the sole reason for mistakes. Choice C and D are incorrect because not all forecasters assume rational expectations, and many do not make unrealistic assumptions.

Even the Most Successful Economic Forecasters Make Mistakes Since They