forecasters predictions of inflation are notoriously inaccurate so their expectatio 637264

1. Forecasters’ predictions of inflation are notoriously inaccurate, so their expectations of inflation cannot be optimal.” Is this statement true, false, or uncertain? Explain your answer.

2. Whenever it is snowing when Joe Commuter gets up in the morning, he misjudges how long it will take him to drive to work. Otherwise, his expectations of the driving time are perfectly accurate. Considering that it snows only once every 10 years where Joe lives, Joe’s expectations are almost always perfectly accurate.” Are Joe’s expectations optimal? Why or why not?