Multiple Choice
Dynamic stochastic general equilibrium (DSGE) models
A) are based on nonlinear specifications
B) combine traditional models with real business cycle models and price stickiness models
C) have to be solved by computers using simulation techniques
D) are used by some central banks as a forecasting tool
E) all of the above
Correct Answer:
Verified
Correct Answer:
Verified
Q1: The propagation mechanism<br>A)explains why shocks to the
Q2: The random walk of GDP model assumes
Q4: The rational expectations approach<br>A) insists that all available
Q5: The real business cycle theory states that<br>A)changes
Q6: The rational expectations equilibrium approach emphasizes<br>A)the microeconomic
Q7: Critics of the so-called DSGE models point
Q8: The rational expectations approach assumes that<br>A)people never
Q9: If we compare the classical model with
Q10: The real business cycle theory asserts that
Q11: The rational expectations equilibrium approach to macroeconomics<br>A)stresses