What Do RBC Economists Mean by the Term Calibration

question 79

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 implications of a theory for all the main economic variables

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Definitions:

Entrepreneurs

Individuals who initiate, manage, and take on the risks of a business or enterprise.

People in General

refers to the overarching category of individuals or groups without specifying demographics, characteristics, or specifics.

Product Satisfaction

The degree to which a product meets or exceeds the expectations and needs of its users or consumers.

Expected Product

The set of attributes or benefits that consumers anticipate receiving from a product or service.