Business, 27.04.2021 15:30 idioticeinstein9021
You are the price manager at a restaurant that, for customer relations reasons, can reset its prices (reprint menus) no more than once every two years. Because you want prices that are competitive but cover costs with as much of a profit margin to spare as possible, you require as accurate a prediction of inflation over the next two years as possible.
What would be your best method of predicting inflation?
a. Take the forecast of the economist with the best track record of predicting inflation.
b. Look to the yields of inflation swaps.
c. Consult the University of Michigan survey of inflation expectations among the public.
d. Take the average inflation forecast across many professional economists.
Answers: 1
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You are the price manager at a restaurant that, for customer relations reasons, can reset its prices...
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