The Dynamic Stochastic General Equilibrium (DSGE) Models Assume

question 49

Multiple Choice

The dynamic stochastic general equilibrium (DSGE) models assume

• A)perfectly competitive markets
• B)that prices respond quickly to changes in economic conditions
• C)that economic agents' current decisions are influenced only by current policy changes
• D)a limited ability of firms to adjust prices
• E)that markets tend to clear very slowly

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