An economist is analyzing the potential impact of a government's decision to increase spending on domestic infrastructure projects. For which of the following national contexts would a simplified economic model, which only includes households, firms, and the government within the country's borders, be the LEAST reliable for predicting the overall economic outcome?

Evaluating an Economic Forecast

Predictive Failures of a Simplified Model

Critique of a Simplified Economic Model

A simple economic model that only includes domestic households, firms, and the government would be sufficient to analyze the full impact of a global tariff war on a nation's economy.