The two general approaches that economists take in trying to forecast the near-term future of the economy are
A) to use small-scale physical models and to search for leading indicators.
B) to use large-scale econometric models and to search for lagging indicators.
C) to use large-scale econometric models and to search for leading indicators.
D) to use large-scale physical models and to search for lagging indicators.

Question

Quizplus · Accepted Answer

Economists typically use large-scale econometric models to analyze historical data and identify relationships between different economic variables. They search for leading indicators, which are economic factors that change before the economy starts to follow a particular pattern or trend, to forecast the near-term future of the economy.

The Two General Approaches That Economists Take in Trying to Forecast