U.S economy Research Paper Example | Topics and Well Written Essays - 2500 words

U.S economy - Research Paper recitationnce, sparing indicators illustrate when the economy falls ilk in a recession and when the economy grows like during economic development (Griffis, ch.1). This paper will predict the economic future of U.S economy one grade from now.In economics, economists develop laws of economic behavior based on the presumption that states do not count, that markets do. In economics, the most important issue is whether the presumptions generate a successful proposition that can be empirically tested and proven to be invalid or reasonable. From this perspective, the major challenge in the economic forecast is the neglect of the give-up the ghost of the state in economic concerns specifically international economic growth. In fact, national activities and policies are significant for economic results (Gilpin, R. & Gilpin, J. 61). Another challenge encountered when making economic forecast is the fantasy of weak efficiency. Weak efficiency is a theory tha t assumes that past forecasts play a critical function in establishing present predictions (Dovern 2). In addition, economists are less conversant with the regional cycles and trends hence the problem of predicting changes in these areas. Moreover, the error of incorrect revenue is another element that can create a problem in producing accurate forecast on the state of the economy. Also, data revisions pose a challenge to forecasts because when there is a structural change in the economy, the forecasting models need to be changes which may consume much succession (Higgins 22). State and national economic predictions assist forecasters to generate an approximation of anticipated revenues from fundamental tax state on the current price. In addition, other professionals in the budget department use the predictions to plan an ingestion budget and provide recommendations for the next fiscal period (Forsythe & Boyd, memo 3).The economic indicators do not jolt the economy in the same m anner. Generally, there are three types of economic