Managerial Economics 13th Edition by James McGuigan,Charles Moyer,Frederick Harris

Exercise 17

Use the monthly series on the Consumer Price Index (all items) from the previous two years to produce a forecast of the CPI for each of the next three years. Is the precision of your forecast greater or less at 36 months ahead than at 12 months ahead Why Compare your answer to that of Moody's on-line U.S. Macro Model at http://www.economy.com/.