When studying the effects of public policy changes, what do economists do?

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 the long-run effects may be different from the short-run effects, and it is important to consider both when evaluating the overall impact of a policy change. Option A is incorrect because falsifying results would be unethical and goes against the principles of empirical research. Option C is incorrect because economists attempt to take into account both direct and indirect effects of policy changes. Option D is incorrect because changing policies immediately without thoroughly evaluating their effectiveness can have unintended consequences.

When Studying the Effects of Public Policy Changes, What Do