DSGE models are
A. similar to RBC models, but government spending shocks play a major role.
B. similar to Keynesian models except in the long run.
C. similar to RBC models but allow for shocks other than productivity shocks.
D. similar to Keynesian models except in the short run.
Answer: C
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If stock prices are expected to climb next year, everything else held constant, the ________ curve for bonds shifts ________ and the interest rate ________
A) demand; left; rises B) demand; right; rises C) demand; left; falls D) supply; left; rises
In the fooling model's labor market diagram, from an initial intersection point of the labor supply and demand curves, tracing "northwest" up the labor demand curve shows
A) what happens to real wages and employment when aggregate demand expands. B) what happens to real wages and employment when aggregate demand contracts. C) what workers think is happening to real wages if an aggregate demand expansion fools them. D) what firms think is happening to real wages if an aggregate demand contraction fools them.
Which of the following is most likely to reduce the market wage rate in a job category?
a. The job requires substantial out-of-town travel. b. Employees have considerable flexibility in choosing their work hours. c. The job is widely viewed as dangerous. d. The job requires employees to move from city to city quite often.
An increase in U.S. sales of movies to other countries raises U.S
a. exports and so raises the U.S. trade balance. b. exports and so reduces the U.S. trade balance. c. imports and so raises the U.S. trade balance. d. imports and so reduces the U.S. trade balance.