Dynamic Stochastic General Equilibrium (DSGE) Models

question 3

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

Understand the concept and purpose of a confidence interval in statistical analysis.

Recognize the relationship between the desired level of confidence and the size of the confidence interval.

Comprehend the implications of choosing different levels of confidence for a confidence interval.

Understand the impact of sample size on the width of the confidence interval.

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Definitions:

National Policy

A course of action adopted and pursued by a government or political party on national issues.

States' Powers

The rights and responsibilities allocated to state governments, as distinguished from those vested in the federal government, under a federal system of governance.

Elastic Clause

A provision in the U.S. Constitution (Article I, Section 8, Clause 18) granting Congress the power to pass all laws necessary and proper for carrying out the enumerated list of powers.

Necessary

Essential or needed for a particular purpose or to achieve a specific outcome.