Critics of the So-Called DSGE Models Point Out That These

question 7

Multiple Choice

Critics of the so-called DSGE models point out that these models

• A)do not incorporate rational expectations
• B)assume that wages and prices adjust slowly so markets take a long time to clear
• C)ignore the fact that the economy can be hit by random shocks
• D)make the unrealistic assumption that people have a well-designed, long?term plan and can therefore adapt to unexpected shocks in a rational, consistent way
• E)all of the above

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Definitions:

Heterozygous Individuals

Organisms having two different alleles for a specific gene, one inherited from each parent.

Positive Assortative Mating

A mating pattern where individuals with similar phenotypes or genotypes are more likely to mate with each other than by chance.

Homozygosity

Homozygosity is a genetic condition in which an individual has two identical alleles for a particular gene or genes.

Allele Frequencies

A measure of how common a particular genetic variant (allele) is within a population's gene pool.