In the Smets-Wouters DSGE Model, a Negative TFP Shock Will

question 100

Multiple Choice

In the Smets-Wouters DSGE model, a negative TFP shock will cause real GDP to ________
By ________.

• A) fall; more than the decline in the shock
• B) rise; more than predicted by empirical models
• C) not change; Okun's law
• D) fall; less than consumption
• E) fall; the same as the decline in inflation

---

Definitions:

Organizational Socialization

The process by which newcomers learn the values, norms, and required behaviors to function effectively within an organization.

Values

Fundamental beliefs or standards that guide behavior and decision-making in individuals or organizations.

Weak Organizational Culture

A situation where an organization's values, beliefs, and behaviors are not strongly shared or practiced among its members, leading to lack of unity and direction.

Subculture Elitism

The belief or attitude that one's own subculture is superior to others, often leading to exclusivity and discrimination.