External shocks can cause economic forecasts to become invalid.

Question

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External shocks, such as natural disasters, political upheavals, or pandemics, can significantly impact an economy and render economic forecasts invalid. These events can disrupt supply chains, cause shifts in consumer behavior, and lead to changes in government policies, all of which can have a significant impact on economic indicators. As a result, economic forecasts may need to be revised to account for the impact of these external shocks.

External Shocks Can Cause Economic Forecasts to Become Invalid