Log out Go to App
Go to App

Learning Materials

Features

Discover

Chapter 1: Problem 10

Suppose you are building an economic model to forecast the number of people employed in U.S. manufacturing in 2024. Should your model take into account possible changes in economic policy enacted by the president and Congress? Briefly explain.

Short Answer

Expert verified
Yes, an economic model forecasting the number of people employed in U.S. manufacturing should account for possible changes in economic policy enacted by the president and Congress due to the significant impact these policies can have on the economy, and specifically the manufacturing sector.

Step by step solution

01

Understanding the Role of Economic Models

An economic model is a simplified framework used for describing how the economy is expected to perform under given conditions. These models use a variety of inputs, or variables, to calculate their forecasts. The model would focus on factors such as the state of the economy, level of technology, labor supply, and such.
02

The Impact of Economic Policy

Economic policy can have a significant impact on the factors a model may consider, such as overall economic conditions, employment rates, and manufacturing sector performance. Any changes in economic policy enacted by the President and Congress such as tax changes, minimum wage laws, or trade policies, can significantly impact the manufacturing sector and consequently the employment in that sector.
03

Incorporating Economic Policy Changes into the Model

Given the impact that changes in economic policy can have, it would be beneficial to account for possible changes in economic policy enacted by the president and Congress in the model. However, it's important to note that predicting future policies is complex and uncertain, but potential major policy shifts and their potential impacts can and should be considered as possible scenarios within the model.

Unlock Step-by-Step Solutions & Ace Your Exams!

  • Full Textbook Solutions

    Get detailed explanations and key concepts

  • Unlimited Al creation

    Al flashcards, explanations, exams and more...

  • Ads-free access

    To over 500 millions flashcards

  • Money-back guarantee

    We refund you if you fail your exam.

Start your free trial

Over 30 million students worldwide already upgrade their learning with Vaia!

One App. One Place for Learning.

All the tools & learning materials you need for study success - in one app.

Get started for free

Most popular questions from this chapter

Leonard Fleck, a philosophy professor at Michigan State University, has written: When it comes to health care in America, we have limited resources for unlimited health care needs. We want everything contemporary medical technology can offer that will improve the length or quality of our lives as we age. But as presently healthy taxpayers, we want costs controlled. Why is it necessary for all economic systems to limit services such as health care? How does a market system prevent people from getting as many goods and services as they want?

Briefly explain which of the following statements represent positive analysis and which represent normative analysis. a. A 50-cent-per-pack tax on cigarettes will lead to a 12 percent reduction in smoking by teenagers. b. The federal government should spend more on AIDS research. c. Rising wheat prices will increase bread prices. d. The price of coffee at Starbucks is too high.

Briefly discuss the difference between microeconomics and macroeconomics.

Briefly discuss the meaning of each of the following economic ideas: People are rational, people respond to economic incentives, and optimal decisions are made at the margin.

Suppose that your college decides to give away 1,000 tickets to the football game against your school's biggest rival. The athletic department elects to distribute the tickets by giving them away to the first 1,000 students who show up at the department's office at 10 A.M. the following Monday. a. Which groups of students will be most likely to try to get the tickets? Think of specific examples and then generalize. b. What is the opportunity cost to students of distributing the tickets this way? c. Productive efficiency occurs when a good or service (such as the distribution of tickets) is produced at the lowest possible cost. Is this an efficient way to distribute the tickets? If possible, think of a more efficient method of distributing the tickets. d. Is this an equitable way to distribute the tickets? Briefly explain.
See all solutions

What do you think about this solution?

We value your feedback to improve our textbook solutions.

Study anywhere. Anytime. Across all devices.

Sign-up for free