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.
D)Assist the Fed with the implementation of monetary policy.

Question

Quizplus · Accepted Answer

External shocks, such as natural disasters or sudden changes in government policies, can disrupt or alter economic conditions in a way that was not accounted for in leading economic indicators. This can render economic forecasts invalid or inaccurate.

External Shocks Can