Fine-tuning the economy
A) is made difficult because of the problem of forecasting the many destabilizing events that regularly occur.
B) has rendered business fluctuations obsolete.
C) became more effective since econometric models were replaced by the leading indicators.
D) has increased the likelihood of recurring depressions.
E) is now possible, but we lack the will to accomplish it.

Question

Quizplus · Accepted Answer

Forecasting destabilizing events such as natural disasters, political upheavals, and sudden market shifts is a significant challenge in fine-tuning the economy. Even with the use of econometric models and leading indicators, these unforeseeable events can destabilize the economy and lead to business fluctuations. Therefore, fine-tuning the economy is made difficult due to the problem of forecasting these events.

Fine-Tuning the Economy