Why economists disagree: because they evaluate the impact of policy over different lengths of time because they make different assumptions because they have different theories about how the economy works because they have different values and ideas about which economic goals are most important.

Part a: understanding the reasons why economists disagree it is not unusual to find “experts” disagreeing with each other; experts disagree about all sorts of matters: nuclear power, environmental protection, and who will win the super bowl, why do experts disagree? How can the average person make sense out of the differing viewpoints and recommendations? Here are several important factors that often lead economists to different conclusions, different time periods one economist might state that the current policy of the government will lead to inflation. another might disagree, both could be right if they are talking about the effects of the policy on inflation at different times- for example, six months from now compared to two years from now. -different assumptions because an economy is a complex system, it is often hard to predict the effects of a particular policy or event, therefore, to be able to make predictions, economists usually must make certain assumptions, but economists often differ in their assumptions. for example, one economist might assume that the federal budget deficit will become larger next year. another might not. these different assumptions could be the result of their assumptions about economic growth, tax revenue, and government spending. -different economic theories economists agree on many matters such as, “if the price of beef goes up and nothing else changes, people will buy less beef.” this is a prediction with which nearly all economists would agree because it rests on the generally accepted law of demand. however, economists have yet to settle a number of important questions, especially those concerning macroeconomics. macroeconomics deals with the behavior of the economy as a whole or large subdivisions of it, and how to influence this behavior. economists have several different theories or explanations about what influences macroeconomic behavior. until these theories are reconciled or until one of them is widely agreed upon as best, economists will disagree on macroeconomic questions because the economists are using different theories. the same applies to certain microeconomics questions. -different values economics is concerned with explaining what his happening in the economy. it is also concerned with predictions. the economist should be able to say to the president or to congress, “if you follow policy one, then x, y, and z will happen. if you follow policy two, then q, r, and s will happen. pick the policy that gives the results you like better.” in practice, such statements by economists often contain more than just analysis and a prediction about results. their statements often recommend policies they like because the results agree with their own values- in other words, the results they prefer.

Part B: Analyze each professor’s position to earn 1-point for each aspect so that the entire analysis will earn a total of 20 points: professor cutter tax- major point: time period: assumptions: theoretical support: values: professor sea more action- major point: time period: assumptions: theoretical support: values: professor n. creez moné- major point: time period: assumptions: theoretical support: values: professor fred critic- major point: time period: assumptions: theoretical support: values:

Answer rating: 100% (QA)

Economic analysis Section I 1 Professor Cutter Tax Major point His primary point is that tax should be cut so as to create a balance with the spending cuts His thoughts lie on the fiscal side of the e... View the full answer