Economic forecasters
A)almost always time their proposed policy actions accurately
B)almost always misread the state of the economy
C)always have an accurate economic model to work with
D)cannot always accurately predict how a policy change will affect the expectations and actions of households and firms
E)none of the above

Question

Quizplus · Accepted Answer

Economic forecasters cannot always accurately predict how a policy change will affect the expectations and actions of households and firms. While they may have accurate economic models to work with, there are many unpredictable factors that can impact the economy, such as natural disasters, political events, and changes in global markets. Therefore, it is difficult to accurately forecast how a policy change will affect economic conditions.

Economic Forecasters