Each year, CBO prepares economic forecasts that underlie its projections of the federal budget. Among the hundreds of economic variables that the agency forecasts, the following ones play a particularly significant role in its budget projections:
Output growth,
The unemployment rate,
Inflation,
Interest rates, and
Wages and salaries.
In general, forecasts produced by CBO, the Administration, and the Blue Chip consensus display similar error patterns over time.
