Economic Models vs. The Real World

“The government’s releases of various economic indicators such as GDP, CPI and unemployment receive wide coverage in the media. In a measured and authoritative voice, various economists and other experts who are interviewed discuss their views regarding the health of the economy. A rise in an indicator such as GDP is interpreted as good news while a decline is seen as pointing to troubles ahead.

What are the tools that economists and financial experts utilize in their assessments of the economy? What is the basis of their framework of thought?”