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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Definitions:

Mumtaz Mahal

A Mughal Empress and the chief consort of Emperor Shah Jahan, remembered for the Taj Mahal, a mausoleum built in her memory.

Delhi Sultanate

A historical period of Muslim rule in the Indian subcontinent from the 13th to the 16th centuries.

Qutb al-Din Aybak

The founder of the Mamluk dynasty in India and the first Sultan of the Delhi Sultanate starting in 1206.

Muhammad of Ghor

A ruler from Ghor, Afghanistan, who played a significant role in the establishment of Muslim rule in India in the 12th century.