Forecasts based on the extrapolation of observed trends and relationships are likely to be accurate,if ________.
A)changes in expectations are properly considered
B)policy actions are anticipated
C)economic behavior is guided by rational expectations
D)policy changes are understood to be permanent

Question

Quizplus · Accepted Answer

Forecasts based on extrapolation are more likely to be accurate if changes in expectations are properly considered, as expectations can significantly influence economic behavior and outcomes.

Forecasts Based on the Extrapolation of Observed Trends and Relationships