When studying the effects of public policy changes, what do economists do?
A) They often falsify results if the desired effect is not reached.
B) They may make different assumptions for the long run and the short run.
C) They attempt to consider only the direct effects and not the indirect effects.
D) They can immediately change policies if they are ineffective.

Question

Quizplus · Accepted Answer

Economists may make different assumptions for the long run and the short run when studying the effects of public policy changes. This is because some effects may take longer to materialize or may have different impacts in the short run versus the long run. Choices A, C, and D are incorrect because economists would not falsify results, attempt to consider only direct effects, or immediately change policies without further analysis.

When Studying the Effects of Public Policy Changes, What Do