The Quantitative DSGE Model That Is Being Used by the Fed

question 112

Multiple Choice

The quantitative DSGE model that is being used by the Fed and European Central Bank is from:

• A) Smets and Wouters.
• B) Galí and Gertler.
• C) Krugman and Jones.
• D) Kydland and Lucas.
• E) Christiano, Eichenbaum, and Evans.

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Definitions:

Direct Materials

Raw materials directly traceable and assignable to a manufactured product as it is being produced.

Direct Labour

The labor costs directly attributable to the production of goods or the provision of services.

Materials Price Variance

The difference between the actual cost of materials and the standard cost, indicating how much was saved or overspent on materials.

Direct Material Used

Direct material used refers to the raw materials that are directly incorporated into a product being manufactured.