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Explain What Is Meant by a Representative Agent

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Essay

Explain what is meant by a representative agent.Why do real business cycle models make this assumption? What is the problem with this assumption?


Definitions:

Everyday Action-directed

Pertaining to activities or tasks that people engage in on a regular basis, with a focus on achieving specific outcomes.

Job Performance

The level of effectiveness and efficiency with which an employee performs their job duties.

Vice Versa

A Latin phrase that means the other way around; it indicates that the relationship or situation can be reversed.

Instrumental Values

Principles or beliefs that are means to an end, serving as tools or methods to achieve something.

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