The Three Components of Any DSGE Model Are

question 33

Multiple Choice

The three components of any DSGE model are:

• A) endogenous variables, shocks, and economic "features."
• B) TFP, the Solow residual, and Cobb-Douglas production.
• C) labor supply, demand, and the real wage.
• D) exogenous variables, endogenous variables, and normal variables.
• E) interest rates, inflation, and unemployment.

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Definitions:

Atomic Components

Fundamental, indivisible parts that make up a molecule or compound in chemistry, or the smallest parts considered in a theoretical framework.

Symbolic Notation

A system of symbols used to represent numbers, operations, relationships, or other entities in fields such as mathematics, chemistry, and music.

Atomic Components

The basic, indivisible parts or elements of a system.

Atomic Statements

The simplest type of statements that cannot be broken down any further into other statements, often considered the building blocks of logic.