Economists and market participants so optimistic

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The Wall Street Journal recession probability tracker shows the likelihood that the US will enter a recession in the coming 12 month between 0 to 75 percent, the widest range since the Great Recession, despite the average likelihood trending downward. The stock market has also reached record highs (by some measures). (A) Why are these economists and market participants so optimistic? Are they looking at the correct economic indicators? (B) Using concepts such as Okun's Law and aggregate demand (IS-LM Model), explain what the government could do to prevent a potential recession, should the outlier be correct (as they were with the Great Recession!).

Reference no: EM131424726

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