The First DSGE Models Were Called ________ Models and Used

question 60

Multiple Choice

The first DSGE models were called ________ models and used the ________ to study macroeconomic fluctuations.

• A) monetary; quantity theory of money
• B) Keynesian; IS/MP model
• C) island; Robinson Crusoe model
• D) real business cycle; Solow model
• E) altruism; overlapping generations model

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Definitions:

Open Account Agreement

A financial arrangement between sellers and buyers allowing the buyer to pay the seller at a later date, commonly used in international trade.

Least Safe

Describing a condition or situation that poses the most significant risk of harm, injury, or danger to individuals or property.

Unfavorable Balance

Describes a situation where a country's imports exceed its exports, leading to a deficit in the balance of payments.

International Monetary Fund

An international organization established in 1944 to promote global monetary cooperation, secure financial stability, and facilitate international trade.