When RBC Economists Compare the Volatility in Their Models to the Data,what

question 26

Multiple Choice

When RBC economists compare the volatility in their models to the data,what are they looking at?

• A)the degree to which variables lead output over the business cycle
• B)the strength of procyclicality of different variables
• C)the amount of random variation in economic variables
• D)the degree to which different economic variables move together

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Definitions:

Flowchart

Visual diagram of a process, including the decisions that need to be made along the way.

Pseudocode

A text-based approach to documenting an algorithm.

Control Structures

Constructs in programming that dictate the order in which operations are executed, including loops, conditionals, and case statements.

Compilation

The process by which code is converted into machine language—the language the CPU can understand.