External shocks can
A)Be predicted using standard statistical techniques.
B)Cause economic forecasts based on leading economic indicators to become invalid.
C)Improve the validity of economic forecasts based on leading economic indicators.

Question

Quizplus · Accepted Answer

External shocks, by their very nature, are unpredictable events that can significantly disrupt the economy and make economic forecasts based on leading economic indicators invalid. Standard statistical techniques may not be able to accurately predict these shocks. While external shocks can lead to changes in economic indicators and potentially improve the accuracy of future forecasts, in the short term they are more likely to create uncertainty and disrupt economic activity.

External Shocks Can