What Do RBC Economists Mean by the Term Calibration

question 30

Multiple Choice

What do RBC economists mean by the term calibration?

• A)modifying the structure of an economic theory to strengthen its logic
• B)changing a theory as the economy changes
• C)working out a detailed numerical example of a more general theory
• D)writing out the implication of a theory for all the main economic variables

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Definitions:

Idaho

A state located in the northwestern region of the United States, known for its mountainous landscapes and vast outdoor recreational areas.

MIT Technology Review

A media company owned by the Massachusetts Institute of Technology (MIT) that publishes articles and analyses on emerging technologies and their impacts on society and business.

Homo

A genus of primates that includes modern humans (Homo sapiens) and several extinct species.

MIS Department

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