Computer forecasting models are most accurate at predicting the economy when
A) inflation is accelerating.
B) there is a turn in the business cycle.
C) economic conditions are relatively stable.
D) supply shocks impact the economy.

Question

Quizplus · Accepted Answer

Computer forecasting models are most accurate when economic conditions are relatively stable, as they are designed to analyze past data and patterns in order to make predictions about future trends. When there are drastic changes or unforeseen events such as supply shocks, these models may not be able to accurately account for them and their predictions may be less reliable.

Computer Forecasting Models Are Most Accurate at Predicting the Economy