Why private economic forecasters compete to sell their services help to constrain behavioral tendencies for too much optimism in projections of real GDP growth? Concept introduction: Both private-sector and other government forecasters have more modest expectations than the Trump administration. His administration is making detailed projections that the economy will expand much faster in the decade ahead than it has in recent years — a forecast that underpins the Trump policy agenda. The administration forecasts growth in the neighborhood of 3 percent through the next decade, compared with around 2 percent projected by private forecasters and the economists at the Congressional Budget Office and the Federal Reserve. If the administration’s forecast comes true, it will indicate an economy 12 percent bigger in 2028 than that had been projected by the more cautious forecasts — an extra $2.8 trillion in economic activity that year, in today’s dollars. Yet, it would require some of the strongest improvements in productivity seen in decades, yet also require that interest rates do not react the way they have historically when growth strengthens.

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Answer 1

Question

Chapter 16, Problem bFCT

To determine

Why private economic forecasters compete to sell their services help to constrain behavioral tendencies for too much optimism in projections of real GDP growth?

Concept introduction:

Both private-sector and other government forecasters have more modest expectations than the Trump administration. His administration is making detailed projections that the economy will expand much faster in the decade ahead than it has in recent years — a forecast that underpins the Trump policy agenda.

The administration forecasts growth in the neighborhood of 3 percent through the next decade, compared with around 2 percent projected by private forecasters and the economists at the Congressional Budget Office and the Federal Reserve.

If the administration’s forecast comes true, it will indicate an economy 12 percent bigger in 2028 than that had been projected by the more cautious forecasts — an extra $2.8 trillion in economic activity that year, in today’s dollars. Yet, it would require some of the strongest improvements in productivity seen in decades, yet also require that interest rates do not react the way they have historically when growth strengthens.

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Answer 2

Question

Chapter 16, Problem bFCT

To determine

Why private economic forecasters compete to sell their services help to constrain behavioral tendencies for too much optimism in projections of real GDP growth?

Concept introduction:

Both private-sector and other government forecasters have more modest expectations than the Trump administration. His administration is making detailed projections that the economy will expand much faster in the decade ahead than it has in recent years — a forecast that underpins the Trump policy agenda.

The administration forecasts growth in the neighborhood of 3 percent through the next decade, compared with around 2 percent projected by private forecasters and the economists at the Congressional Budget Office and the Federal Reserve.

If the administration’s forecast comes true, it will indicate an economy 12 percent bigger in 2028 than that had been projected by the more cautious forecasts — an extra $2.8 trillion in economic activity that year, in today’s dollars. Yet, it would require some of the strongest improvements in productivity seen in decades, yet also require that interest rates do not react the way they have historically when growth strengthens.

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Answer 3

Question

Chapter 16, Problem bFCT

To determine

Why private economic forecasters compete to sell their services help to constrain behavioral tendencies for too much optimism in projections of real GDP growth?

Concept introduction:

Both private-sector and other government forecasters have more modest expectations than the Trump administration. His administration is making detailed projections that the economy will expand much faster in the decade ahead than it has in recent years — a forecast that underpins the Trump policy agenda.

The administration forecasts growth in the neighborhood of 3 percent through the next decade, compared with around 2 percent projected by private forecasters and the economists at the Congressional Budget Office and the Federal Reserve.

If the administration’s forecast comes true, it will indicate an economy 12 percent bigger in 2028 than that had been projected by the more cautious forecasts — an extra $2.8 trillion in economic activity that year, in today’s dollars. Yet, it would require some of the strongest improvements in productivity seen in decades, yet also require that interest rates do not react the way they have historically when growth strengthens.

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Answer 4

Question

Chapter 16, Problem bFCT

To determine

Why private economic forecasters compete to sell their services help to constrain behavioral tendencies for too much optimism in projections of real GDP growth?

Concept introduction:

Both private-sector and other government forecasters have more modest expectations than the Trump administration. His administration is making detailed projections that the economy will expand much faster in the decade ahead than it has in recent years — a forecast that underpins the Trump policy agenda.

The administration forecasts growth in the neighborhood of 3 percent through the next decade, compared with around 2 percent projected by private forecasters and the economists at the Congressional Budget Office and the Federal Reserve.

If the administration’s forecast comes true, it will indicate an economy 12 percent bigger in 2028 than that had been projected by the more cautious forecasts — an extra $2.8 trillion in economic activity that year, in today’s dollars. Yet, it would require some of the strongest improvements in productivity seen in decades, yet also require that interest rates do not react the way they have historically when growth strengthens.

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Answer 5

Chapter 16, Problem bFCT

To determine

Why private economic forecasters compete to sell their services help to constrain behavioral tendencies for too much optimism in projections of real GDP growth?

Concept introduction:

Both private-sector and other government forecasters have more modest expectations than the Trump administration. His administration is making detailed projections that the economy will expand much faster in the decade ahead than it has in recent years — a forecast that underpins the Trump policy agenda.

The administration forecasts growth in the neighborhood of 3 percent through the next decade, compared with around 2 percent projected by private forecasters and the economists at the Congressional Budget Office and the Federal Reserve.

If the administration’s forecast comes true, it will indicate an economy 12 percent bigger in 2028 than that had been projected by the more cautious forecasts — an extra $2.8 trillion in economic activity that year, in today’s dollars. Yet, it would require some of the strongest improvements in productivity seen in decades, yet also require that interest rates do not react the way they have historically when growth strengthens.

Answer 6

Chapter 16, Problem bFCT

To determine

Why private economic forecasters compete to sell their services help to constrain behavioral tendencies for too much optimism in projections of real GDP growth?

Concept introduction:

Both private-sector and other government forecasters have more modest expectations than the Trump administration. His administration is making detailed projections that the economy will expand much faster in the decade ahead than it has in recent years — a forecast that underpins the Trump policy agenda.

The administration forecasts growth in the neighborhood of 3 percent through the next decade, compared with around 2 percent projected by private forecasters and the economists at the Congressional Budget Office and the Federal Reserve.

If the administration’s forecast comes true, it will indicate an economy 12 percent bigger in 2028 than that had been projected by the more cautious forecasts — an extra $2.8 trillion in economic activity that year, in today’s dollars. Yet, it would require some of the strongest improvements in productivity seen in decades, yet also require that interest rates do not react the way they have historically when growth strengthens.

Answer 7

Chapter 16, Problem bFCT

To determine

Why private economic forecasters compete to sell their services help to constrain behavioral tendencies for too much optimism in projections of real GDP growth?

Concept introduction:

Both private-sector and other government forecasters have more modest expectations than the Trump administration. His administration is making detailed projections that the economy will expand much faster in the decade ahead than it has in recent years — a forecast that underpins the Trump policy agenda.

The administration forecasts growth in the neighborhood of 3 percent through the next decade, compared with around 2 percent projected by private forecasters and the economists at the Congressional Budget Office and the Federal Reserve.

If the administration’s forecast comes true, it will indicate an economy 12 percent bigger in 2028 than that had been projected by the more cautious forecasts — an extra $2.8 trillion in economic activity that year, in today’s dollars. Yet, it would require some of the strongest improvements in productivity seen in decades, yet also require that interest rates do not react the way they have historically when growth strengthens.

Answer 8

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Answer 9

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Answer 10

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Answer 11

Ch. 16.E - Prob. 1P Ch. 16.E - Prob. 2P Ch. 16.E - Prob. 3P Ch. 16.E - Prob. 4P Ch. 16 - Prob. 16.1LO Ch. 16 - Prob. 16.2LO Ch. 16 - Prob. 16.3LO Ch. 16 - Prob. 16.4LO Ch. 16 - Prob. 16.5LO Ch. 16 - Prob. aFCT

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