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Now we switch to a fictional economy. In this part, there will be 6 forecasting exercises.
Your task: In each exercise, you will be asked to make your inflation rate forecast for the upcoming year in a fictional economy. You will be shown a plot of inflation rates for the past 5 years. Please provide your forecast based on the information provided to you.
Objective: Your forecast should be as close as possible to future inflation in the fictional economy. In this context, future refers to the next year's inflation rate.
Where the data come from: The data you see on the history plots are generated by a mathematical model. The model imitates the real life inflation data of the economy. The data in the fictional economy is based on historical data from Sweden over 190 years.
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