External shocks can
A)Be predicted using standard statistical techniques.
B)Cause economic forecasts based on leading economic indicators to become inaccurate.
C)Improve the validity of economic forecasts based on leading economic indicators.
D)Assist the Fed with the implementation of monetary policy.

Question

Quizplus · Accepted Answer

External shocks, such as natural disasters or changes in government policies, can disrupt economic trends and cause economic forecasts based on leading economic indicators to become inaccurate. Therefore, external shocks cannot be predicted using standard statistical techniques and can challenge the validity of economic models.

External Shocks Can