When all relevant information is used to forecast inflation,the resulting forecast is called

Question

Quizplus · Accepted Answer

When all available information is used to make a forecast, the resulting forecast is called a rational expectation. This means that the forecast is based on all relevant and available information, including past trends, current economic conditions, and future expectations. Rational expectations are often used in macroeconomic models and are believed to provide a more accurate forecast of future inflation rates.

When All Relevant Information Is Used to Forecast Inflation,the Resulting