"Budget deficits should be avoided, even if the economy is below potential, because they reduce saving and lead to lower growth." Does this policy directive follow from the short-run or the long-run framework? Short-run framework. The short-run framework directs one to avoid deficits; in the long-run framework deficits are useful if the economy is significantly below potential. Neither. Deficits are offset by an increase in private saving and do not lead to lower growth in the long-run or the short-run framework. Long-run framework. The long-run framework directs one to avoid deficits; in the short-run framework deficits are useful if the economy is significantly below potential. Both. Deficits reduce saving and lead to lower growth in the long-run and the short-run framework.

the long-run framework directs one to avoid deficits; in the short-run framework deficits are useful if the economy is significantly below potential.

Explanation:

"Budget deficits should be avoided, even if the economy is below potential, because they reduce saving and lead to lower growth." This policy directive follow the long-run framework directs one to avoid deficits; in the short-run framework deficits are useful if the economy is significantly below potential.

The reason is that in the short-run, deficits offer economic solutions by being an antidote to recessions, hence they could be a strategy of recession management in the short run

However in the long-run, deficits are not advisable as they could lead to debts because the major way to manage such deficits is by external borrowings.

a manufacturer of printed circuit boards uses exponential smoothing with trend to forecast monthly demand of its product. at the end of december, the company wishes to forecast sales for january. the estimate of trend through november has been 200 additional boards sold per month. average sales have been around 1000 units per month. the demand for december was 1100 units. the company uses α = 0.20 and β = 0.10. make a forecast including trend for the month of january.

answer; planning;