The So-Called DSGE Models Assume That

Multiple Choice

The so-called DSGE models assume that

A) what happens in the future depends to a large degree on the decisions that economic agents make in the present
B) people have rationally designed long?term plans and adapt fairly easily to unexpected shocks to the economy
C) markets tend to clear even though they are not always all perfectly competitive
D) the forward?looking behavior of economic agents is the result of their rational expectations
E) all of the above