They do this by collecting and analyzing data. Some economists watch changes in the economy and try to predict what will happen next. Economists may study the relationship between the supply and demand of goods and services. Most economists specialize in a certain area. Common areas are the price of food, rent, or energy.
Economists use their knowledge to help businesses.
They may work with insurance companies, banks, and securities firms. Economists also work for industry and trade associations, labor unions, and government agencies. Economists use computer programs to make predictions. They predict things such as business cycles. They also predict the effects of rising prices on the economy and the effects of new tax laws on unemployment levels.