Alternative Scenarios

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August 31, 2024 4 min read Definitions
Scenario: Economic Assumptions and Policy Choices
Economics Finance Scenario Economic Policy Exogenous Variables Alternative Scenarios Policy Analysis
A scenario is a set of assumptions on policy choices and the values of exogenous variables used to predict future developments in an economy. By varying these assumptions, alternative scenarios can be created to evaluate the effects of different policies and the robustness of conclusions to alternative values of exogenous variables.
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