When studying the effects of public policy changes,economists
A)always refrain from making assumptions.
B)sometimes make different assumptions about the short run and the long run.
C)consider only the direct effects of those policy changes and not the indirect effects.
D)consider only the short-run effects of those policy changes and not the long-run effects.

Question

Quizplus · Accepted Answer

Economists sometimes make different assumptions about the short run and the long run when studying the effects of public policy changes. This is because policy changes may have different effects on the economy in the short term versus the long term. Considering both short-term and long-term effects allows economists to provide a more comprehensive analysis of policy changes. A is incorrect because economists do not always refrain from making assumptions. C and D are incorrect because economists should consider both direct and indirect effects, as well as short-term and long-term effects, when analyzing policy changes.

When Studying the Effects of Public Policy Changes,economists