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

question 19

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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