You now should realize how important it is for economists to

You now should realize how important it is for economists to try and predict future conditions of the U.S. economy. Economists are also interested in the performance of the economy at a more local level. Discuss how local and national forecasts play an important role in the State and Federal levels.

Solution

Economic forecasts are synonymous with preparation of budgets to cater for the anticipated economic situations. In this case, the budgets enable economists to establish the economic situation at the federal level and local level in order to ensure how economy can be stimulated at each level. As a result this enables the government to develop economic policies that suit each level of the government. For instance during the periods of poor economic performance the state makes economic decisions based on projections made at the local and federal level such as calculating the taxes imposed and allocating funds to various economic needs