ECONOMIST COMMENTED

                       In the previous televised news, two economists who have been known for being
an expert who studies the relationship of society’s resources and its product or outcome have
given a statement that resulted into a debate. The comment of these two economists was being
televised. Why did the people assume that it was a total debate and, what is the side of each
economist?
                     Each one of them gives a site and statements about what’s happening in the
current economy of our country. The factors that affect the economy. The first economist
commented that food prices were high because of the weather related factors. Let’s dig deep in
this comment. We can see and reflect that this statement is factual and in fact you can feel it
now especially if you’re the one who’s budgeting in your house. A big example here is the issue
in agrarian, where the prices of the rice sometimes inflate 10-20% in just a month. Because of
the weather. Because unstable weather and too much rainy or sunny season destroys the crops
making the price of it increase and makes our country import from other suppliers. 
                    While on the other side of the second economist, Food prices were too high to
permit consumers to increase spending on other goods. This statement has two sides. The first
one is about the production, when the production announces a shortage you will expect in just a
few days the goods will increase the price too. Because of the sudden rise of demand and low
supply. And the second side is about making a product saturated to lead the customer into other
options. For example raising prices on unhealthy products, such as soda and fast food, seems
to influence behavior, but not as dramatically. The market tends to switch the people who
consume unhealthy products to switch them into healthy foods.
                     The two statements of the different economists were both normative. They have
their own side of the economy, one is inflation of goods because of the weather and the other
one is about the price itself of the food. And the psychological thinking of the consumers that
they tend to play.  Each statement was factual and you can observe that the two economists
really take time to study before they respond and give these statements. 
 Price of gasoline next year will rise by about 6percent.

Economists are known as the trusted person when it comes to visualizing the
status of an economy. The production flows the prices, inflation and even shortage. But how
sure that their forecasting about one aspect should be trusted and relied on? When your
forecast is greater than the actual, you make an error of over-forecasting. When your forecast is
less than the actual, you make an error of under-forecasting. Both errors can be very costly and
time-consuming.

The economist based her forecast on these three assumptions. First, the United
States is not involved in a war. Second, the price of crude oil remains constant. Third, there is
no tanker that interrupts based on macroeconomics or microeconomic analysis. These 3
assumptions make her statement look the opposite way.

If that is her basis, she should not see petrol levels increase by 6 percent over
the next year. Gasoline retail prices tend to rise gradually in the spring and peak at the end of
the summer when people drive more often, as the factors that influence gasoline volatility are
seasonal demand and gasoline specifications. Gasoline prices are usually low during the winter.
Gasoline specifications and formulations also change depending on the season. Environmental
regulations require gasoline sold in the summer to be resistant to evaporation in warm climates.
Second, gasoline prices tend to rise as the available gasoline supply decreases in relation to
actual or expected gasoline demand or consumption.

Gasoline prices can change rapidly if something disrupts the supply of crude
oil, the operation of refineries, or the supply to the gasoline pipeline. Although crude oil prices
are stable, gasoline prices fluctuate due to seasonal fluctuations and gasoline specifications.
And its foundation was based on reliable sources from the US Energy Information
Administration. If you were about to analyze the forecast of the economist is the opposite of the
factors that affect the price of gasoline. And the factors are given by the U.S energy information
administrator. Retail gasoline prices are mainly affected by crude oil prices and the level of
gasoline supply relative to gasoline demand. Strong and increasing demand for gasoline and
other petroleum products in the United States and the rest of the world can place intense
pressure on available supplies. Forecast of the economist present and based on different data
to make sure that their report is accurate. And if it’s accurate their reports are useful especially
when an economy is barely thriving. The problem is, that when something really large occurs,
economic forecasts either fail to pick it or grossly underestimate its size.