The Key Change the Early DSGE Models Made to the ________

question 93

Multiple Choice

The key change the early DSGE models made to the ________ was to change the nature of ________ from ________.

• A) AS/AD model; potential output; linear to fluctuating
• B) quantity equation; velocity; being constant to moving in unpredictable ways
• C) Robinson Crusoe model; the discount rate; high to low patience
• D) Fisher equation; inflation expectations; ex post to ex ante
• E) Solow model; TFP; growing at a constant rate to shocks

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Definitions:

Brain Activity

The various physical and physiological functions carried out by the brain, including neural activity, blood flow, and energy consumption.

Circadian Rhythm

An internal biological clock that regulates the sleep-wake cycle over a roughly 24-hour period.

Dissociation

describes a psychological state in which a person disconnects from their thoughts, feelings, memories, or sense of identity, often as a response to traumatic events.

Restorative Theory

A theory suggesting that sleep is necessary for the body and mind to repair and rejuvenate from the day's activities and stresses.