Describe the General Procedures Followed by DSGE Researchers Creating a New

question 33

Essay

Describe the general procedures followed by DSGE researchers creating a new model.

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Definitions:

Desirable Behaviors

Actions or conduct considered appealing or appropriate by a group, culture, or society, often encouraged or rewarded.

Reinforce

To strengthen a behavior, action, or concept, usually through repetition or reward.

Punishment

A consequence or penalty given for a perceived misbehavior or infringement, intended to reduce or eliminate that behavior.

Unpleasant Event

An occurrence that is undesirable or causes discomfort.